Question
Table 1: MH Administrative Costs Report for the year 2019 Month Number of emergency procedure Number of Patients Administrative costs August 28 1200 17800 September
Table 1: MH Administrative Costs Report for the year 2019
Month Number of emergency procedure Number of Patients Administrative costs
August 28 1200 17800
September 48 2800 38600
October 48 4800 45400
November 32 2400 34600
Q1. Use the high-low method to estimate the behavior of the hospital's administrative costs based on number of patients within the relevant range (which is estimated to be between 1200 and 2400 number of patients). Use an equation to express the results of this estimation method, and comment on the results.
Q2. Explain the concept of relevant range. (You may use the MH cost data to support your explanation).
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
