The manager of the main laboratory facility at CapitalFit Center is interested in being able to predict the overhead costs each month for the lab. The manager believes that total overhead varies with the number of lab tests performed but that some costs remain the same each month regardless of the number of lab tests performed. The lab manager collected the following data for the first seven months of the year. (Click the icon to view the data.) Use the high-low method to determine the laboratory's cost equation for total laboratory overhead. Use your results to predict total laboratory overhead if 2,700 lab tests are performed next month. Let's begin by determining the formula that is used to calculate the variable cost (slope). Data table Change in cost Change in volume =Variable cost (slope) Number of Lab Month Tests Performed Total Laboratory Overhead Costs Now determine the formula that is used to calculate the fixed cost component. January. 3,100 $22,800 Total operating cost Total variable cost = Fixed cost February 2,750 $21,700 Use the high-low method to determine CapitalFit's operating cost equation. (Round the variable cost to the nearest cent.) March 3,350 $23,900 April 3,750 $28,100 y= x+ May 4,000 $27,500 June 2,000 $19,500 July 3,900 $27,100 Help me solve this Video Get more help - Print Done