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Using the high-low method, estimate the cost formula

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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 $

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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