The manager of the main laboratory facility at UrbanHealth 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. LOADING... (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 3,000 lab tests are performed next month.

The manager of the main laboratory facility at Urban 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 numb 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 3,000 lab tests are performed next month. Let's begin by determining the formula that is used to calculate the variable cost (slope). Data Table Variable cost (slope) Number of Lab Tests Performed Total Laboratory Overhead Costs Month January 2,800 $21,500 $22,700 February 2,600 March 3,100 $27,900 April 3,550 May 3,700 $31,400 $28,500 $19,500 June 1,200 July 1,400 $14,500 Print Done