Use the high-low method to estimate the cost behavior for the clinic?s administrative costs. Express the cost behavior in formula (y=a+bX). What is the variable cost per patient?

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Month January February March April May June July August September October November December Patient Load(x) 1,400 500 400 1,000 1,300 900 1,100 300 700 1,200 600 1,500 Administrative Cost(y) $13,900 7,000 6,000 10,000 11,900 9,200 10,200 4,100 9,400 11,100 8,300 16,100 Month January February March April May June July August September October November December Patient Load(x) 1,400 500 400 1,000 1,300 900 1,100 300 700 1,200 600 1,500 Administrative Cost(y) $13,900 7,000 6,000 10,000 11,900 9,200 10,200 4,100 9,400 11,100 8,300 16,100

Answer rating: 100% (QA)

We have At highest activity x2 1500 y2 16100 At lowest activity x1 300 y1 4100 Variable cost per patient b is calculated using the following formula Variable Cost per patient y2 y1 x2 x1 161004100 150... View the full answer