Budgeting & Finance - healthcare please provide formulas(s) as work needs to be transferred to excel.

Cost Behavior: Problem 5

The Cardiology Department has provided you with the following data in its annual report:

Month                       Number of EKGS                     Costs

January......................              175                              $3,000

February....................              225                                3,600

March.........................              275                                4,300

April............................              175                                3,800

May............................              200                                2,700

June...........................              225                                3,200

July............................              300                                4,250

August........................              325                                4,400

September.................              275                                4,100

October......................              200                                3,150

November..................              150                                2,650

December..................              175                                2,750

1. Use the scattergraph method to determine the fixed and variable components of admitting costs. Use Excel or Sheets to show your work.

2. Use the sheet function to show the equation. Determine r2. Be sure to explain your findings in term of the fixed and variable cost. Interpret the r2.