Valley Dental Services is a specialized dental practice whose only service is filling cavities. Valley has recorded
Question:
Valley Dental Services is a specialized dental practice whose only service is filling cavities. Valley has recorded the following for the past nine months.
Required:
1. Use the high-low method to estimate total fixed cost and variable cost per cavity filled. Using these estimates, calculate Valley’s total cost for filling 500 cavities.
2. How closely does your estimate match the actual cost for March? Why would these be different?
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