Canyon Dental Services is a specialized dental practice whose only service is filling cavities. Canyon...
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Accounting
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 | Number of Cavities Filled | Total Cost |
|---|---|---|
| January | 400 | $ 5,350 |
| February | 325 | 5,050 |
| March | 675 | 6,600 |
| April | 700 | 6,300 |
| May | 425 | 5,450 |
| June | 500 | 5,850 |
| July | 550 | 6,150 |
| August | 300 | 5,200 |
| September | 450 | 5,500 |
Required:
- Use the high-low method to estimate total fixed cost and variable cost per cavity filled.
- Using these estimates, calculate Canyons total cost for filling 800 cavities.
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