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    Scattergraph Analysis; High-Low Method

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    Month X-Rays Taken X-Ray Costs
    January...... 6,250 $28,000
    February..... 7,000 29,000
    March........ 5,000 23,000
    April........ 4,250 20,000
    May.......... 4,500 22,000
    June......... 3,000 17,000
    July......... 3,750 18,000
    August....... 5,500 24,000
    September.... 5,750 26,000

    1.Prepare a scattegraph using the data. Plot cost on the vertical axis
    and activity on the horizontal axis. Fit a line to your plotted points.
    2.Using the quick-and-dirty method, what is the approximate monthly fixed
    cost for X-Rays? The approximate variable cost per X-ray taken?
    3.Scrutinize the points on your graph, and explain why the high-low method
    would or would not yield an accurate cost formula in this situation.

    I came up with, approx 15,000 fixed and 12,500 variable.
    (27,500-15,000) is this accurate? also would like to see your graph to see if it resembles mine.

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    https://brainmass.com/business/accounting/scattergraph-analysis-high-low-method-166858

    Solution Summary

    The solution provides a scattergraph analysis. The expert uses the high-low method.

    $2.19

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