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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 | 400 | $5,250 |
February | 500 | 5,850 |
March | 675 | 6,500 |
April | 525 | 5,650 |
May | 700 | 5,900 |
June | 425 | 5,800 |
July | 600 | 5,750 |
August | 300 | 5,400 |
September | 450 | 5,250 |
Required:
1. Use the high-low method to estimate total fixed cost and variable cost per cavity filled.
Fixed cost = ?
Variable cost per cavity filled = ?
2. Using these estimates, calculate Mountains total cost for filling 800 cavities.
Estimated total cost = ?
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