Mountain Dental Services is a specialized dental practice whose only service is

Question

Mountain Dental Services is a specialized dental practice whose only service is filing cavities Mountain has recorded the following for the past nine months Number of Cavities Filled 625 525 475 375 675 500 325 700 450 Total Cost 56,350 Month January February March April May July August September 6,500 5,700 5,150 6,350 5,450 Required 1. Use the high-Jow method to estimate total fixed cost and variable cost per cavity filied (Round your answers to 2 decimal places.) Fixed Cost Variable Cost per Unit 2. Using these estimates, calculate Mountain's total cost for fhiing 550 cavities

Explanation / Answer

1) Variable cost per unit = (6350-5150)/(700-325) = 3.20 per unit

Fixed cost = Total cost-variable cost

= 6350-(700*3.2)

Fixed cost = $4110

2) Estimated total cost = (550*3.2)+4110 = $5870

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