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After graduating from dental school two years ago, Dr. Lauren Farish purchased the dental practice of a long-time dentist who was retiring. In January of this year she had to replace the out-dated autoclave equipment she inherited from the previous dentist. Now as she is preparing her budget for next year, she is concerned about understanding how her cost for sterilizing her dental instruments has changed. She has gathered the following information from her records:
Month
Number of instruments used
Total autoclave cost
January
626
$7,436
February
526
6,510
March
726
7,050
April
926
9,070
May
826
7,774
June
1,026
8,554
July
1,226
10,006
August
1,126
9,896
What is the variable cost of sterilizing an instrument using the new equipment? (Round answer to 2 decimal places, e.g. 15.25.)
What is the fixed cost of the autoclave equipment? (Round answer to 0 decimal places, e.g. 5,275.)
What is the cost formula that Dr. Farish should use for estimating autoclave sterilization costs for next year's budget?
If Dr. Farish estimates she will use 1,162 instruments next month, what cost should she include in her budget for instrument sterilization?(Round answer to 0 decimal places, e.g. 5,275.)
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