For Heavy Manufacturing Company, labor-hours are 40,000 and wages $184,000 at the high point of the relevant range, and labor-hours are 24,000 and wages $120,000 at the low point of the relevant range.
What is the constant?
A) $24,000
B) $64,000
C) $120,000
D) $184,000

Question

Quizplus · Accepted Answer

Slope = ($184,000 - $120,000) / (40,000 - 24,000) = $4.00
Constant (using highest observation): $184,000 - ($4.00 × 40,000) = $24,000
Constant (using lowest observation): $120,000 - ($4.00 × 24,000) = $24,000

For Heavy Manufacturing Company, Labor-Hours Are 40,000 and Wages $184,000