Question
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
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Communication And Auditing A Step By Step Guide
Authors: Melanie McKay, Elizabeth Rosa
1st Edition
075931652X, 978-0759316522
