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Belle Clinic provides various treatments for women. The company's CFO, Michelle Chen, has been concerned of late about the company's consumption of medical supplies. To better understand the behaviour of this cost, Michelle discusses with her staff who is responsible for the company's cost system. After some discussion, Michelle concludes that there are two potential cost drivers for the company's medical supplies costs. The first driver is the total number of procedures performed. The second is the number of patient-hours generated by the company. The staff provides the following data relating to the past year to Michelle: Required: 1. Based on the provided information, do you consider the medical supplies cost is a fixed cost, variable cost, or mixed cost. Give your arguments. 2. Using High and Low Method, find the amount of fixed costs and variable costs in the medical supplies cost based on each cost driver suggested by the CFO. 3. The company has done three regression analysis to estimate the medical supplies cost behaviour. The results are the following: Regression 3 : Medical supblies costs =a+(b1 No. of procedures )+(b2 No. of patient-hours ) a) Would you recommend to use the cost estimation based on High and Low Method or Regression Method? Explain b) Based on the regression results, which cost estimation do you recommend to be used? Explain. 4. The company would like to know how much the direct cost of one treatment for a patient. In one month, the clinic expects to serve 1,500 patients and each patient will be treated for How much is the direct cost of treatment per patient

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