Problem
Mountain Dental Services is a specialized dental practice whose only service is filling cavities. Mountain has recorded the following for the past nine months:
|
Month
|
Number of Cavities Filled
|
Total Cost
|
|
January
|
575
|
$6,350
|
|
February
|
625
|
6,250
|
|
March
|
700
|
6,400
|
|
April
|
600
|
6,250
|
|
May
|
525
|
6,150
|
|
June
|
375
|
5,400
|
|
July
|
475
|
5,800
|
|
August
|
350
|
5,000
|
|
September
|
400
|
5,400
|
Required:
1. Use the high-low method to estimate total fixed cost and variable cost per cavity filled.
2. Using these estimates, calculate Mountain's total cost for filling 450 cavities.