The Surgical Care Unit of Gentle Care Gentle Care Health Group uses the high-low method to predict its total surgical unit supplies costs.

Gentle Care

Variable cost components=

Highest surgical unit cost- lowest surgical unit cost

/

Highest nursing hrs worked - Lowest nursing hrs worked

=

Total fixed cost =

Total mixed cost - (highest nursing hrs worked X variable cost component )

Y= variable result (x) + total fixed cost

Operating cost = (variable component x number of hrs worked) + fixed cost