Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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.
- Use the high-low method to determine the variable rate for each x-ray and the fixed monthly cost for radiology services.
- Determine the cost formula for monthly radiology services.
- 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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started