The Controller at Humber River Hospital has asked for a cost formula that separates the fixed and variable components of the costs for the Patient Admission Department . Monthly costs and the number of patients admitted for the past 10 months are shown below :

The Controller at Humber River Hospital has asked for a cost formula that separates the fixed and variable components of the costs for the Patient Admission Department. Monthly costs and the number of patients admitted for the past 10 months are shown below: Required: 1. Use the High-Low method to establish the fixed and variable components of patient admissions costs. (10 marks) 2. Express the fixed and variable component of admission as a cost formula in the form Y=a+bx