The data below have been taken from the cost records of the Halifax General Hospital. The data relate to the costs of admitting patients at various levels of patient activity: Requirements: 1. Using the high-low method, and based upon the data collected: (a) estimate the variable cost per admission. (b) estimate the fixed costs for admission. (c) estimate the cost formula for admissions (cost formula is in the format of Y=a+bx ). 2. Using the cost formula you derived above, what admission costs would you expect to be incurred during a month in which there are 2,750 hospital admissions? 3. Prepare a scattergraph plot using the data. Plot cost on the vertical axis and activity on the horizontal axis. Add the visual best-fit "trendline" to fit a line through the points on your scattergraph. Also add the "high-low trendline" so that you can compare the two trendlines and the data set points in Requirement 4. (Hint: You can either use software, such as Microsoft Excel, or Google Sheets, or draw the scattergraph plot on your computer using a drawing program (Microsoft Paint, or similar) or you can draw and plot the points on a piece of paper by hand and take a picture and insert the picture into your document.) 4. Scrutinize the points on your scattergraph, and explain why the high-low method would or would not yield an accurate cost formula in this situation. Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Requirements: (For each of the following independent situations, always go back to the original question data to answer the requirement.) 1. What is the contribution margin per unit? 2. What is the contribution margin ratio? 3. If sales decrease to 825 units, what would be the increase (or decrease) in operating income? 4. Assume you are considering a strategic marketing change that will increase the variable cost per unit by $1, spending on advertising increases by $1,500, and unit sales increase by 250 units, what would be the operating income? Should you make this change (base your response solely upon the change in operating income)? 5. What is the break-even point in unit sales? 6. How many units must be sold to achieve a target profit of $16,000 ? 7. What is the margin of safety in sales dollars? What is the margin of safety percentage