Reference no: EM132735206

The following information is taken from Miami Heat Testing Service:

                              Number of Tests Performed             Total Cost of Testing

January                     61,000                                    $1,420,000

February                       55,000                               $1,340,000

March                      50,000                                    $1,290,300

April                           72,000                                   $1,430,000

May                        78,000                                     $1,440,000

June                        81,000                                       $1,540,000

July                       90,000                                        $1,590,000

August                   108,000                                    $1,610,000

September               111,000                                       $1,700,000

October                128,000                                        $1,720,000

November                 140,000                                        $1,860,000

December                 132,000                                            $1,810,000

Required:

Problem 1: Using the high-low method, determine the following:

A. The variable cost per test. Round to 2 digits.

B. The total fixed cost of operating the testing facility. Answers may vary slightly due to rounding.

C. The expected cost for a month if 125,000 tests are performed.