Task:
The number of X-rays taken and X-ray costs over the last nine months in Beverly Hospital are given below:
Month: X-ray taken X-ray costs
January 6,250 $28,000
Februray 7,000 $29,000
March 5,000 $23,000
April 4,250 $20,000
May 4,500 $22,000
June 3,000 $17,000
July 3,750 $18,000
August 5,500 $24,000
September 5,750 $26,000
Q1. using the high-low method, estimate the cost formula for X-ray costs.
Q2. using the cost formula you derived above, what X-ray costs would you expect to be incurred during a month in which 4,600 X-ray are taken?