Mountain Dental Services is a specialized dental practice wh

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 January February March April May June July August September Number of Cavities Filled 625 525 475 375 675 500 325 700 450 Total Cost $6,350 5,950 5,650 5,350 6,500 5,700 5,150 6,350 5,450 Required 1. Use the high-low method to estimate total fixed cost and variable cost per cavity filled. (Round your answers to 2 decimal places.) Fixed Cost Variable Cost per Unit 2. Using these estimates, calculate Mountain\'s total cost for filling 550 cavities Estimated Total Cost

Solution

1. Fixed cost= 4110

variable cost= 3.2 per unit

workings:

2.

	Number of cavities filled	Total cost
Highest	700	6350
Lowest	325	5150
Difference	375	1200
Variable cost per unit	1200/375	3.2
Variable cost of filling 325 cavities	325*3.2=	1,040
Fixed cost	5150-1400=	4,110