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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 | 625 | $ | 5,600 |
February | 700 | 6,000 | |
March | 500 | 4,500 | |
April | 425 | 4,100 | |
May | 450 | 4,500 | |
June | 300 | 3,200 | |
July | 375 | 3,500 | |
August | 550 | 4,900 | |
September | 575 | 5,400 | |
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 500 cavities. |
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