After graduating from dental school two years ago, Dr. Betty Harris purchased the dental practice of a long-time dentist who was retiring. In January of this year, she had to replace the outdated autoclave equipment she inherited from the previous dentist. Now, as she is preparing her budget for next year, she is concerned about understanding how her cost for sterilizing her dental instruments has changed. She has gathered the following information from her records: Month Number of instruments used Total autoclave cost January 850 $7,780 February 750 7,125 March 920 8,279 April 950 8,735 May 1,150 9,645 June 900 8,208 July 1,050 9,490 August 975 8,699 (a) Identify the high and low points. Activity Level $ High point enter the activity level for high point $enter the high point in dollars Low point enter the activity level for low point $enter the low point in dollars Using the high-low method, what is the variable cost of sterilizing an instrument using the new equipment? (Round answer to 2 decimal places, e.g. 52.75.) Variable cost $enter Variable cost in dollars per instrument rounded to 2 decimal places per instrument
After graduating from dental school two years ago, Dr. Betty Harris purchased the dental practice of a long-time dentist who was retiring. In January of this year, she had to replace the outdated autoclave equipment she inherited from the previous dentist. Now, as she is preparing her budget for next year, she is concerned about understanding how her cost for sterilizing her dental instruments has changed. She has gathered the following information from her records: Month Number of instruments used Total autoclave cost January 850 $7,780 February 750 7,125 March 920 8,279 April 950 8,735 May 1,150 9,645 June 900 8,208 July 1,050 9,490 August 975 8,699 (a) Identify the high and low points. Activity Level $ High point enter the activity level for high point $enter the high point in dollars Low point enter the activity level for low point $enter the low point in dollars Using the high-low method, what is the variable cost of sterilizing an instrument using the new equipment? (Round answer to 2 decimal places, e.g. 52.75.) Variable cost $enter Variable cost in dollars per instrument rounded to 2 decimal places per instrument
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
After graduating from dental school two years ago, Dr. Betty Harris purchased the dental practice of a long-time dentist who was retiring. In January of this year, she had to replace the outdated autoclave equipment she inherited from the previous dentist. Now, as she is preparing her budget for next year, she is concerned about understanding how her cost for sterilizing her dental instruments has changed. She has gathered the following information from her records:
|
Month
|
Number of instruments used
|
Total autoclave cost
|
|||||
|---|---|---|---|---|---|---|---|
|
January
|
850 | $7,780 | |||||
|
February
|
750 | 7,125 | |||||
|
March
|
920 | 8,279 | |||||
|
April
|
950 | 8,735 | |||||
|
May
|
1,150 | 9,645 | |||||
|
June
|
900 | 8,208 | |||||
|
July
|
1,050 | 9,490 | |||||
|
August
|
975 | 8,699 |
(a)
Identify the high and low points.
Using the high-low method, what is the variable cost of sterilizing an instrument using the new equipment? (Round answer to 2 decimal places, e.g. 52.75.)
| Activity Level | $ | |||
|---|---|---|---|---|
|
High point
|
enter the activity level for high point | $enter the high point in dollars | ||
|
Low point
|
enter the activity level for low point | $enter the low point in dollars |
Using the high-low method, what is the variable cost of sterilizing an instrument using the new equipment? (Round answer to 2 decimal places, e.g. 52.75.)
| Variable cost | $enter Variable cost in dollars per instrument rounded to 2 decimal places | per instrument |
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