b. What is the equation of the line you drew in part (a)? c. What is the expected electricity cost when 750 machine hours are used? d. Why does your answer to part (c) differ from the actual cost for the month of October, when 750 machine hours were used? 2.9 (LO 2) High-low method Refer to the data in Exercise 2-8. Required a. Using the high-low method, compute the variable cost of electricity per machine hour. b. Compute the total fixed cost of electricity. c. Represent the electricity cost function in equation form. d. What is the expected electricity cost when 750 machine hours are used? e. Why does your answer to part (d) differ from the actual cost for the month of October, when 750 machine hours were used? 2.10 (LO 2) High-low method After graduating from dental school two years ago, Dr. Lauren Farish purchased the dental practice of a long-time dentist who was retiring. In January of this year she had to replace the outdated autoclave equipment she inherited from the previous dentist. Now, as she is prepar- ing her budget for next year, she is concerned about understanding how her cost for sterilizing her dental instruments has changed. She has gathered the following information from her records: Month Number of Instruments Used Total Autoclave Cost January 850 $7,600 February 750 6,800 March 920 8,200 April 950 8,600 May 1,150 9,900 June 900 8,100 July 1,050 9,600 August 975 8,700 Required a. What is the variable cost of sterilizing an instrument using the new equipment? b. What is the fixed cost of the autoclave equipment? c. What is the cost formula that Dr. Farish should use for estimating autoclave sterilization costs f next year's budget? d. If Dr. Farish estimates she will use 900 instruments next month, what cost should she include in h budget for instrument sterilization? 2.11 (LO 2) Estimated cost equation Refer to the data in Exercise 2.4. Using the form y = mx + estimate the cost formula for each cost incurred by Furman Flower Cart. 2.12 (LO 2) Cost estimation Managers of Tom Brown Distributors are evaluating the comper the company's sales personnel. Currently, the two salespeople have a combined salar