Mountain dental services is a specialized dental practice whose only service is filling cavities. mountain has recorded the following for the past nine months: number of cavitiesmonth filled total costjanuary 475 $5,750february 575 6,250march 350 5,200april 675 6,500may 500 5,650june 400 5,250july 625 6,300august 650 6,000september 450 5,450use the high-low method to estimate total fixed cost and variable cost per cavity filled. round your answers to 2 decimal places. fixed cost cost per unit these estimates, calculate mountain's total cost for filling 550 cavities. estimated total cost

The fixed cost, variable cost per unit and the total cost is $3,800, $4 per unit ,and $6,000 respectively

Explanation:

1. The computation of the variable cost per unit is shown below:

= (High total cost -  low total cost) ÷ (High number of cavities - low number of cavities)

= ($6,500 - $5,200) ÷ (675 - 350)

= $1,300 ÷ 325

= $4

2. The computation of the fixed cost is shown below:

Fixed cost  = total cost -  Variable cost

                  = $6,500 - (675 × $4)

                  =  $6,500 - $2,700

                  = $3,800

3. And, the total cost for 550 cavities would be equal to

= Fixed cost + variable cost

= $3,800 + (550 cavities × $4)

=  $3,800 + $2,200)

=  $6,000

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