Question: Canyon Dental Services is a specialized dental practice whose only service is filling cavities. Canyon has recorded the following for the past nine months: Month
Canyon Dental Services is a specialized dental practice whose only service is filling cavities. Canyon has recorded the following for the past nine months:
| Month | Number of Cavities Filled | Total Cost |
|---|---|---|
| January | 625 | $ 5,600 |
| February | 700 | 6,000 |
| March | 500 | 4,500 |
| April | 425 | 4,100 |
| May | 450 | 4,500 |
| June | 300 | 3,200 |
| July | 375 | 3,500 |
| August | 550 | 4,900 |
| September | 575 | 5,400 |
Required:
- Use the high-low method to estimate total fixed cost and variable cost per cavity filled.
- Using these estimates, calculate Canyons total cost for filling 500 cavities.
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