Presented below is the production data for the last six months of the year for the mixed costs incurred by Vignovich Company.
Vignovich Company uses the high-low method to analyze mixed costs.
-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 = $39,250 + $0.33X.

Question

Presented below is the production data for the last six months of the year for the mixed costs incurred by Vignovich Company.
  Vignovich Company uses the high-low method to analyze mixed costs.
-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 = $39,250 + $0.33X.

Quizplus · Accepted Answer

The cost function is in the form of Y = fixed cost + variable cost per unit * number of units. In this case, the fixed cost is $2,200 and the variable cost per unit is $2.80. So the cost function would be Y = $2,200 + $2.80X.

Presented Below Is the Production Data for the Last Six