4. The administrator of ABC Hospital would like to know the relationship between the costs of admitting in relation to the number of patients being admitted and determine the cost formula. The following are the related data for the past five months that will be used determine such cost formula. Month |# of Patients Admitted |Admitting Costs January 1,800 P 14,700 February 1,900 P 15,200 March 1,700 P 13,700 April 1,600 P 14,000 May 1,500 P 14,300 The controller suggested to use the high-low method approach to derive for the cost formula. If the controller’s suggestion is to be followed: What would be the prediction formula/cost formula?
4. The administrator of ABC Hospital would like to know the relationship between the costs of admitting in relation to the number of patients being admitted and determine the cost formula. The following are the related data for the past five months that will be used determine such cost formula.
Month |# of Patients Admitted |Admitting Costs
January 1,800 P 14,700
February 1,900 P 15,200
March 1,700 P 13,700
April 1,600 P 14,000
May 1,500 P 14,300
The controller suggested to use the high-low method approach to derive for the cost formula. If the controller’s suggestion is to be followed:
What would be the prediction formula/cost formula?
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