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Scattergraph Method, High-Low Method Deepa Dalal opened a free-standing-radiology clinic. She had anticipated that the costs for the radiological tests would be primatily fixed, but she found that costs increased with the number of tests performed. Costs for this service over the past nine months are as follows: 1. Based on the information provided, select the correct graph Scattergraph: a. Scattergraph of Radiology Tests c. Scattergraph of Radiology Tests The correct answer is Based on an examination of the scattergraph, does there apgear to be a linear relationship between the cost of radiology service and the number of tests? 2. Compute the cost formula for radiology services using the high-low method. Round the intercept to the nearest dollar and round the siope to 2 decimal piace: y=5x+5 3. Calculate the predicted cost of radiologhtservices for October for 3,500 tests using the formula found in Requirement 2 . For computations, carry amounts out to two de the nearest dollar. Feathisce T Cresikrwov A linear refationstip between the cost and activity driver is ideal, 1. Look at the pattern of the data-plots. 2. Then high low method gives managers a quick way of estimating cost behavior. Only two data points are needed, the high and sow activity points, so this niethod is longhistery