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Mountain Dental Services is a specialized dental practice whose only service is filling cavities. Mountain has recorded the following for the past nine months: Month
Mountain Dental Services is a specialized dental practice whose only service is filling cavities. Mountain has recorded the following for the past nine months:
Month | Number of Cavities Filled | Total Cost |
January | 350 | $5,200 |
February | 475 | 5,750 |
March | 450 | 5,600 |
April | 425 | 5,550 |
May | 625 | 6,050 |
June | 525 | 6,100 |
July | 500 | 5,700 |
August | 650 | 6,100 |
September | 375 | 5,250 |
Required:
1. Use the high-low method to estimate total fixed cost and variable cost per cavity filled.
2. Using these estimates, calculate Mountains total cost for filling 400 cavities.Step by Step Solution
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