The administrator of Azalea Hills Hospital would like a cost formula linking th costs involved in admitting patients to the number of patients admitted during a month. The admitting department’s costs and the number of patients admitted during the immediately preceding eight months are given in the following table;

Month Number of paitents Admitted Admitting department costs
May 1800 $14,700.00
June 1900 $15,200.00
July 1700 $13,700.00
August 1600 $14,000.00
September 1500 $14,300.00
October 1300 $13,100.00
November 1100 $12,800.00
December 1500 $14,600.00

A. Use the high low method to establish the fixed and variable components of admitting costs

B. Express the fixed and variable components of admitting costs as a cost formula in the linear equation for of Y =a +bX