Answer the following questions using the information below:
Presented below are the production data for the first six months of the year for the mixed costs incurred by Gallup Company.
Gallup Company uses the high-low method to analyze mixed costs.
-How would the cost function be stated?
A)y = $440 + $1.12X
B)y = $3,562.30 + $0.144X
C)y = $107.20 + $1.12
D)y = $7,850 + $0.132X

Question

Answer the following questions using the information below:
Presented below are the production data for the first six months of the year for the mixed costs incurred by Gallup Company.
  Gallup Company uses the high-low method to analyze mixed costs.
-How would the cost function be stated?
A)y = $440 + $1.12X 
B)y = $3,562.30 + $0.144X 
C)y = $107.20 + $1.12 
D)y = $7,850 + $0.132X

Quizplus · Accepted Answer

The cost function is typically expressed as y = fixed cost + (variable cost per unit * number of units), which matches option A.

Answer the Following Questions Using the Information Below