Question: E5-5 Estimating Cost Behavior Using High-Low Method [LO 5-3] Mountain Dental Services is a specialized dental practice whose only service is filling cavities. Mountain has
E5-5 Estimating Cost Behavior Using High-Low Method [LO 5-3] 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 January February March April May June July August September Number of Cavities Filled 600 375 500 675 525 550 625 300 325 Total Cost $6,150 5,250 5,850 6,500 6,100 5,950 6,000 5,000 5,000 Required: 1. Use the high-low method to estimate total fixed cost and variable cost per cavity filled. (Round your answers to 2 decimal places.) Fixed Cost Variable Cost per Unit 2. Using these estimates, calculate Mountain's total cost for filling 750 cavities. Estimated Total Cost
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
