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 January February March April Number of Cavities Filled Total Cost 450 $5,250 575 6,250 700 6,500 300 5,300 500 5,950 350 5,300 600 5,600 675 6,500 425 5,200 May June July August September 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 400 cavities. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using these estimates, calculate Mountain's total cost for filling 400 cavities. Estimated Total Cost < Required 1 Required 2

Answer 1

1
	Total cost	Number of cavities filled
High level	6500	700
Low level	5300	300
Change	1200	400
Variable cost	3	=1200/400
Fixed cost	4400	=6500-(700*3)
Variable cost per cavity filled	3
2
Estimated total cost	5600	=4400+(400*3)