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
Jan 696 $7,456
February 596 6,512
March 796 7,028
April 996 9064
May 896 7748
June 1096 8,670
July 1,296 10,183
August 1,196 9876
What is the variable cost of sterilizing an instrument using the new equipment?
What is the fixed cost of the autoclave equipment?
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 1243 instruments next month, what cost should she include in her budget for instrument sterilization?