Canyon Dental Services is a specialized dental practice whose only service is filling cavities. Canyon has recorded the following for the past nine months: Month January February March April May June July August September Required: Number of Cavities Filled 425 450 575 600 350 675 500 475 400 Total Cost $5,400 5,650 6,350 6,250 5,050 Fixed cost Variable cost per cavity filled 6,350 5,650 5,800 5,300 1. Use the high-low method to estimate total fixed cost and variable, cost per cavity filled. 2. Using these estimates, calculate Canyon's total cost for filling 525 cavities. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Use the high-low method to estimate total fixed cost and variable cost per cavity filled. Note: Round your Variable cost per unit to 2 decimal places.
Canyon Dental Services is a specialized dental practice whose only service is filling cavities. Canyon has recorded the following for the past nine months: Month January February March April May June July August September Required: Number of Cavities Filled 425 450 575 600 350 675 500 475 400 Total Cost $5,400 5,650 6,350 6,250 5,050 Fixed cost Variable cost per cavity filled 6,350 5,650 5,800 5,300 1. Use the high-low method to estimate total fixed cost and variable, cost per cavity filled. 2. Using these estimates, calculate Canyon's total cost for filling 525 cavities. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Use the high-low method to estimate total fixed cost and variable cost per cavity filled. Note: Round your Variable cost per unit to 2 decimal places.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Step 1: Introduction
VIEWStep 2: Working Note #1:- (Determination of highest - lowest level of activity and their costs)
VIEWStep 3: Working Note #2:- (Determination of variable cost per unit)
VIEWStep 4: Working Note #3 :- Determination of fixed cost
VIEWStep 5: Working Note #4:- (Determination of cost Equation)
VIEWStep 6: Working Note #5:- (Determination of total cost at 525 cavities filled)
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