GE GENUINE OFFICE You may be a victim of software con 10 H KLAL ACAD D AB Question 4 High-Low Method; Predicting Cost The number of blood tests performed and the related costs over the last nine months in Netcare Hospital are given below: Month January February March April May June July August September Blood Tests Blood Test Performed Costs 6,250 $ 28,000 7,000 $ 29,000 5,000 $ 23,000 4,250 $ 20,000 4,500 $ 22,000 3,000 $ 17,000 3,100 S 16,800 5,500 S 24,000 5,750 $ 26,000 Required: 1 Using the high-low method, estimate the cost formula for blood tests. Activity Cost Question 4 Formula Sheet Grade Required: 1. Using the high-low method, estimate the cost formula for blood tests. Activity Cost 19 20 21 22 23 24 25 26 27 Computing the fixed cost using the high level of activity: Cost formula: Y = + 29 30 31 32 33 34 35 36 37 38 39 40 -11 2 2. Using the cost formula you derived above, what blood test costs would you expect to be incurred during a month in which 2.300 blood tests are performed? 14 Question 4 Formula Sheet Grade