Baker Enterprises developed a cost function for manufacturing overhead costs of Y = £8,000 + £1.60X. Estimated manufacturing overhead costs at 10,000 units of production are
A)£16,000.
B)£17,600.
C)£24,000.
D)£26,000.

Question

Quizplus · Accepted Answer

The cost function is Y = £8,000 + £1.60X. For 10,000 units, substitute X with 10,000: Y = £8,000 + £1.60(10,000) = £8,000 + £16,000 = £24,000.

Baker Enterprises Developed a Cost Function for Manufacturing Overhead Costs