The Metropolis Health System has a system-wide training course for nurse aides. The course requires a packet of materials that MHS calls the training pack. Due to turnover, and because the course is system-wide, there is a monthly demand for new packs. In addition, the local community college also obtains the training packs used in their credit courses from MHS.

The Community College Education Coordinator needs to know how much of the cost is fixed and how much of the cost is variable for these training packs. She decides to use the high-low method of computation.

Using the monthly utilization information presented below, find the fixed and variable portion of costs through the high-low method.

                                   Number of

  Month                    Training Packs                    Cost

January                           1,000                         $6,200

February                            200                           1,820

March                                250                           2,350

April                                  400                           3,440

May                                   700                           4,900

June                                   300                           2,730

July                                   150                           1,470

August                               100                           1,010

September                       1,100                           7,150

October                              300                           2,850

November                          250                           2,300

December                          100                           1,010

Answer rating: 100% (QA)

Solution To use the highlow method we need to identify the highest and lowes... View the full answer