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Canyon Dental Services is a specialized dental practice whose only service is filling cavities. Canyon has recorded the following for the past nine months: Month
Canyon Dental Services is a specialized dental practice whose only service is filling cavities. Canyon has recorded the following for the past nine months:
Month | Number of Cavities Filled | Total Cost |
---|---|---|
January | 625 | $ 5,600 |
February | 700 | 6,000 |
March | 500 | 4,500 |
April | 425 | 4,100 |
May | 450 | 4,500 |
June | 300 | 3,200 |
July | 375 | 3,500 |
August | 550 | 4,900 |
September | 575 | 5,400 |
Required:
- Use the high-low method to estimate total fixed cost and variable cost per cavity filled.
- Using these estimates, calculate Canyons total cost for filling 500 cavities.
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