E5-7 (Algo) Estimating Cost Behavior Using High-Low Method [LO 5-3]

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	425	$ 5,400
February	450	5,650
March	575	6,350
April	600	6,250
May	350	5,050
June	675	6,350
July	500	5,650
August	475	5,800
September	400	5,300

Required:

1. Use the high-low method to estimate total fixed cost and variable cost per cavity filled.
2. Using these estimates, calculate Canyons total cost for filling 525 cavities.