Question Details

What is the slope coefficient




Answer the following questions using the information below: 

Syosis Company uses the high-low method to estimate its cost function. The information for 2015 is provided below:

	Machine-hours	 Costs
	Highest observation of cost driver	2,500	$300,000
	Lowest observation of cost driver	1,500	$ 220,000

1) What is the slope coefficient? 
A) $120.00
B) $147.00
C) $80.00
D) $130.00

2) What is the constant for the estimated cost equation? 
A) $220,000 
B) $300,000
C) $100,000
D) $0


3) What is the estimated cost function for the above data?
A) y = 300,000 +120X 
B) y = 220,000 +147X
C) y = 100,000 +80X
D) y = 130X

4) What is the estimated total cost when 1,300 machine-hours are used? 
A) $411,100 
B) $204,000
C) $456,000
D) $156,000




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