Reference no: EM132833367

Question - The controller of SUREDEAD Hospital would like to come up with a cost formula that links Admitting Department cost to the number of patients admitted during a month. The Admission Department's costs and the number of patients admitted during the past nine months follow:

Month	Number of Patients	Admission Department's Cost
April	18	P15,600
May	19	P15,200
June	17	P13,700
July	15	P14,600
August	15	P14,300
September	11	P13,200
October	11	P12,800
November	48	P72,500
December	16	P14,000

REQUIRED - Using the high-low method, determine the admission department's:

1. Variable cost per unit

2. Total annual fixed costs

3. Monthly cost function

4. Estimated cost assuming 12 patients will be admitted next month.