Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following table shows the number of patients treated and the total costs for hospital for each of the past four months: a Total Cost

image text in transcribed

The following table shows the number of patients treated and the total costs for hospital for each of the past four months: a Total Cost ($) Month Patients January 5,000 37,500 February 8,400 45,660 March 8,300 45,050 April 5,900 39,420 Required: a) Use the high-low method to estimate the cost behaviour for the hospital's Costs, assuming that variable costs vary in proportion to the number of patients treated. Express the cost behaviour in a cost function (Y = a +bX, where x = number of patients to be treated). (6 marks) b) In May, the hospital expects to treat 6,000 patients. Predict the hospital's total costs for May. (3 marks) c) Some businesses use only approximations when estimating cost functions. What are some possible reasons for this

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Business Innovation Audit

Authors: William Tate

1st Edition

0955970733, 978-0955970733

More Books

Students also viewed these Accounting questions