Explore BrainMass
Share

Explore BrainMass

    Using the high-low method, estimate the cost formula

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    The number of X-rays taken and X-ray costs over the last nine months in Beverly Hospital are given below:

    Month X-Rays Taken X-Ray Costs
    January 6,600 $21,120
    February 13,800 $35,460
    March 13,100 $34,576
    April 11,100 $29,808
    May 8,500 $27,200
    June 10,500 $26,256
    July 5,100 $16,320
    August 10,800 $26,726
    September 5,800 $18,560
    ________________________________________

    Required:
    1. Using the high-low method, estimate the cost formula for X-ray costs. (Round the "Variable cost per X-ray" to 2 decimal places and the "Fixed cost" to the nearest dollar amount. Omit the "$" sign in your response.)

    Y = $
    + $
    X

    2. Using the cost formula you derived above, what X-ray costs would you expect to be incurred during a month in which 4,650 X-rays are taken? (Omit the "$" sign in your response.)

    Variable cost $

    Fixed cost

    ________________________________________
    Total cost $

    © BrainMass Inc. brainmass.com October 10, 2019, 4:14 am ad1c9bdddf
    https://brainmass.com/business/purchases-inventory-and-cogs/452760

    Attachments

    Solution Preview

    Required:
    1. Using the high-low method, estimate the cost formula for X-ray costs. (Round the "Variable cost per X-ray" to 2 decimal places and the "Fixed cost" to the nearest dollar amount. Omit the "$" sign in your response.)
    The highest and lowest levels of activity are ...

    Solution Summary

    Using the high-low method, estimate the cost formula for X-ray costs.

    $2.19