Question

Mountain Dental Services is a specialized dental practice whose only service is filling cavities. Mountain has recorded the following for the past nine months:

Month	Number of Cavities Filled	Total Cost
January	600	$6,150
February	375	5,250
March	500	5,850
April	675	6,500
May	525	6,100
June	550	5,950
July	625	6,000
August	300	5,000
September	325	5,000

Required:

1. Use the high-low method to estimate total fixed cost and variable cost per cavity filled.

2. Using these estimates, calculate Mountain’s total cost for filling 750 cavities.

Answer 1