Use the information below to answer the following question(s).
Presented below is the production data for the last six months of the year for the mixed costs incurred by Wagner Company.

-Using the high-low method, the cost function would be stated as
A) y = $2,200 + $2.80x.
B) y = $17,816 + $0.36x.
C) y = $536 + $3.06x.
D) y = $24,450 + $0.33x.
E) y = $39,250 + $0.33x.

Question

Use the information below to answer the following question(s).
Presented below is the production data for the last six months of the year for the mixed costs incurred by Wagner Company.
 
-Using the high-low method, the cost function would be stated as
A) y = $2,200 + $2.80x. 
B) y = $17,816 + $0.36x. 
C) y = $536 + $3.06x. 
D) y = $24,450 + $0.33x. 
E) y = $39,250 + $0.33x.

Quizplus · Accepted Answer

b = ($44,200 - $20,120)/(15,000 - 6,400) = $2.80
$44,200 = a + $2.80 (15,000)
$2,200 = a

Use the Information Below to Answer the Following Question(s)