High-Low Method

Harborville Company provided the following data related to medical costs for providing radiology services and the estimated number of # X-rays processed from January September 2020. Although the clinic manager expected the majority of costs would be fixed, she observed a trend if increasing costs compared with the number of X-rays taken.

1. Use the high-low method to determine the variable rate for each x-ray and the fixed monthly cost for radiology services.

2. Determine the cost formula for monthly radiology services.

3. Compute the estimated cost for radiology services for the next month, assuming 2,625 x-rays.

Month	Total cost	# of X-rays
Jan	100125	2100
Feb	101295	1950
March	131250	2325
Pril	127950	2625
May	132675	2550
June	139950	2775

July 130838 2880

Agust 146633 3075

September 138975 2588