The manager of the main laboratory facility at Elmhurst Health 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 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 3, 100 lab tests are performed next month. Data Table Let's begin by determining the formula that is used to calculate the variable cost (slope). Variable cost (slope) Now determine the formula that is used to calculate the fixed cost component. Number of Lab Tests Performed Total Laboratory Overhead Costs Month Fixed cost 3,000 January February March $21,900 $20,600 Use the high-low method to determine Elmhurst Health's operating cost equation. (Round the variable cost to the nearest cent.) 2,850 3,400 y = $ X + $ 3,700 $28,900 $31,000 $28,000 April May Use the operating cost equation you determined above to predict total laboratory overhead if 3,100 lab tests are performed next month. 3,900 The total laboratory overhead at a volume of 3,100 lab tests is $ June $20,200 1,900 2,050 July $14,000 Print Done