Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exercise D2-10 After graduating from dental school two years ago, Dr. Lauren Farish purchased the dental practice of a long-time dentist who was retiring. In

Exercise D2-10

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 In January of this year she had to replace the outdated autoclave equipment she inherited from the previous dentist.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 preparing 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. 622 $7,470

February 522 $6,562

March 722 $7,146

April 922 $9,054

May 822 $7,634

June 1,022 $8,612

July 1,222 $10,081

August 1,122 $9,878

What is the variable cost of sterilizing an instrument using the new equipment?(Round answer to 2 decimal places, e.g. 52.75.)

Variable cost$

per instrument

What is the fixed cost of the autoclave equipment?(Round answer to 0 decimal places, e.g. 5,275.)

What is the cost formula that Dr. Farish should use for estimating autoclave sterilization costs for next year's budget?

Formula of total cost($5.03 # of instruments) + $3,936($5.03 # of instruments) - $3,936($3,936 # of instruments) + $5.03($5.03 # of instruments) - $3,936($5.03 # of instruments) + $3,936($3,936 # of instruments) - $5.03($3,936 # of instruments) + $5.03($3,936 # of instruments) - $5.03

If Dr. Farish estimates she will use 1,168 instruments next month, what cost should she include in her budget for instrument sterilization?(Round answer to 0 decimal places, e.g. 5,275.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Corporate Financial Reporting And Analysis

Authors: S David Young, Jacob Cohen, Daniel A Bens

4th Edition

111949463X, 9781119494638

More Books

Students also viewed these Accounting questions

Question

How do the two components of this theory work together?

Answered: 1 week ago

Question

5. How can I help others in the network achieve their goals?

Answered: 1 week ago