The number of blood tests performed and the related costs over the last nine months in Brentline Hospital are given below: Month Blood Tests Performed Blood Test Costs January 3, 125 $ 14,000 February 3,500 $ 14, 500 March 2,500 $ 11,500 April 2, 125 $ 10,000 May 2,250 $ 11,000 June 1,500 $ 8,500 July 1,550 $ 8,400 August 2, 750 $ 12,000 September 2, 875 $ 13,000 Required: 1. Using the high-low method, estimate the cost formula for blood tests. 2. Using the cost formula you derived above, what blood test costs would you expect to be incurred during a month in which 2,300 blood tests are performed?

The number of blood tests performed and the related costs over the last nine months in Brentline Hospital are given below: Month Blood Tests Performed Blood Test Costs January 3, 125 $ 14,000 February 3,500 $ 14, 500 March 2,500 $ 11,500 April 2, 125 $ 10,000 May 2,250 $ 11,000 June 1,500 $ 8,500 July 1,550 $ 8,400 August 2, 750 $ 12,000 September 2, 875 $ 13,000 Required: 1. Using the high-low method, estimate the cost formula for blood tests. 2. Using the cost formula you derived above, what blood test costs would you expect to be incurred during a month in which 2,300 blood tests are performed?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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