EXERCISE 3-8 High-Low Method; Predicting Cost [L02] The number of blood tests performed and the related...

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EXERCISE 3-8 High-Low Method; Predicting Cost [L02] The number of blood tests performed and the related costs over the last nine months in Brentline Hospital are given below: Month January February March April May June July August Blood Tests Performed Blood Test Costs 3,125 $ 14,000 3,500 $ 14,500 2,500 $ 11,500 2.125 $ 10,000 2,250 $ 11,000 1,500 $ 8,500 1,550 $ 8,400 2,750 2,875 $ 12,000 $13,000 September Required: 1. Using the high-low method, estimate the cost formula for blood tests. 2. Using the cost formula you derived above, what blood test costs would you expect to be incurred during a month in which 2,300 blood tests are performed? EXERCISE 3-8 High-Low Method; Predicting Cost [L02] The number of blood tests performed and the related costs over the last nine months in Brentline Hospital are given below: Month January February March April May June July August Blood Tests Performed Blood Test Costs 3,125 $ 14,000 3,500 $ 14,500 2,500 $ 11,500 2.125 $ 10,000 2,250 $ 11,000 1,500 $ 8,500 1,550 $ 8,400 2,750 2,875 $ 12,000 $13,000 September Required: 1. Using the high-low method, estimate the cost formula for blood tests. 2. Using the cost formula you derived above, what blood test costs would you expect to be incurred during a month in which 2,300 blood tests are performed?