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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
P14,300
September
11
P13,200
October
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.
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