Given a data set, use both graphical analysis and cost-volume analysis to estimate the price for 130 pieces of medical equipment.

2. Calculate the variable cost per unit.

3. Now, using the data set and the variable cost, calculate the fixed cost element. 4. With both the fixed and variable costs, build the estimating lines equation. 5. What is the cost estimate for 130 ball bearing sets? 6. What is the cost estimate for 200 ball bearing sets? 7. Based on your market research, what is the lowest price you would reasonably expect to pay?

6.4 EXERCISE: MEDICAL EQUIPMENT Directions Given a data set, use both graphical analysis and cost-volume analysis to estimate the price for 130 pieces of medical equipment. MARKET RESEARCH DATA FOR MEDICAL EQUIPMENT Quantity Total Cost Unit Cost $375.00 20 S7,500.00 $250.00 40 $10,000.00 60 $12,500.00 $208.33 $187.50 80 $15,000.00 100 $17,500.00 $175.00 $166.67 120 $20,000.00 140 $22,500.00 $160.71 $156.25 160 $25,000.00 1 Graph the data of quantity in relation to total cost on the chart (Bearing Sets) below. Bearing Sets $30,000.00 $25,000.00 $20,000.00 $15,000.00 $10,000.00 $5,000.00 $0.00 20 40 60 80 100 120 140 160