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 In January of this year, she had to replace the outdated autoclave equipment she inherited from the previous dentist.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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 In January of this year, she had to replace the outdated autoclave equipment she inherited from the previous dentist.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  
 
 
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