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 In January of this year, she had to replace the outdated autoclave equipment she inherited from the previous dentist.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