Compute the estimated costs for each of the following equations assuming the following costs for July:

In addition,state whether each is for a variable,fixed,or mixed cost.
a.Total estimated costs = intercept
b.Total estimated costs = constant
c.Total estimated costs = constant + (slope × cost driver)
d.Total estimated costs = slope coefficient × cost driver
In addition,state whether each is for a variable,fixed,or mixed cost.

Question

Compute the estimated costs for each of the following equations assuming the following costs for July:
  
In addition,state whether each is for a variable,fixed,or mixed cost.
a.Total estimated costs = intercept
b.Total estimated costs = constant
c.Total estimated costs = constant + (slope × cost driver)
d.Total estimated costs = slope coefficient × cost driver
In addition,state whether each is for a variable,fixed,or mixed cost.

Quizplus · Accepted Answer

The Answer is a.fixed,$80,000
b.fixed,$80,000
c.mixed,$80,000 + ($6 × 2,000)= $92,000
d.variable,$6 × 2,000 = $12,000

Compute the Estimated Costs for Each of the Following Equations