Question Details

What is the estimated total cost at an operating level 



Answer the following questions using the information below: 

The Frontive Company has assembled the following data pertaining to certain costs that cannot be easily identified as either fixed or variable. Frontive Company has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation.

	Cost	Hours
	$24,700	5,000
	26,000	5,500
	34,000	7,500
	45,370	10,300
	38,000	9,500

1) What is the cost function? 
A) y = $45,370 + $4.19X 
B) y = $24,700 + $4.40X 
C) y = $34,000 + $4.94X 
D) y = $5,200 + $3.90X 


2) What is the estimated total cost at an operating level of 9,000 hours? 
A) $35,100 
B) $40,300 
C) $44,460 
D) $39,644 




Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help