A staff meeting has been called at SportsLab, a drug-testing facility retained by several professional and college sports leagues and associations. The chief of testing, Dr. Hyde, has demanded an across-the-board increase in prices for a particular test because of the increased testing and precision that are now required.

The administrator of the laboratory has asked you to measure the mixed-cost behavior of this particular testing department and to prepare a short report she can present to Dr. Hyde. Consider the following limited data:

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Average Test Procedures per Month 400 500 600 Average Monthly Cost of Test Procedures Monthly averages, 20x7 Monthly averages, 20x8 Monthly averages, 20x9 $60,000 80.000 40,000