Question
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 | 300 | $ 5,000 |
February | 375 | 5,200 |
March | 550 | 6,150 |
April | 500 | 5,700 |
May | 450 | 5,500 |
June | 525 | 6,000 |
July | 350 | 5,100 |
August | 625 | 6,300 |
September | 600 | 6,250 |
Required:
- Use the high-low method to estimate total fixed cost and variable cost per cavity filled.
- Using these estimates, calculate Canyon's total cost for filling 575 cavities.
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