Question

15-0607043 View Policies Current Attempt in Progress After graduating from dental school two years ago, Dr. Patricia Johnson purchased the dental practice of a long time dentist whe was retiring. In January of this year, she had to replace the outdated autoclave equipment she inherited from the previous dentist. Now, as she is preparing her budget for next year, she is concerned about understanding how her cost for sterliding her detal instruments has changed. She has gathered the following information from her records: Month January February March Number of instruments used 850 750 April Total autoclave cost $5,560 5,025 5,975 6,395 7,065 5,928 7,030 May 920 950 1,150 900 1,050 975 June July August 6,329 (a) Identify the high and low points. $ Activity Level

Answer 1

(a)		Activity Level	$
	High point	1,150	7,065
	Low point	750	5,025

	Variable Cost	=Change in Cost / Change in level
		= ( 7,065 - 5,025 ) / ( 1,150 - 750 )
		= 2,040 / 400
		= $ 5.10 per instrument