Find the fixed and variable portion of costs

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The Metropolis Health System has a system-wide training course for nurse aides. The course requires a packet of materials that MHS calls the training pack. Due to turnover, and because the course is system-wide, there is a monthly demand for new packs. In addition, the local community college also obtains the training packs used in their credit courses from MHS.

The Community College Education Coordinator needs to know how much of the cost is fixed and how much of the cost is variable for these training packs. She decides to use the high-low method of computation.

Question 1: Using the monthly utilization information presented below, find the fixed and variable portion of costs through the high-low method.

                  Number of

Month         Training Packs                  Cost

January             1,000                  $6,200

February              200                  1,820

March                 250                     2,350

April                  400                      3,440

May                  700                       4,900

June                  300                       2,730

July                     150                     1,470

August                 100                    1,010

September           1,100                   7,150

October                  300                 2,850

November               250                  2,300

December              100                  1,010

Reference no: EM132628665

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