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Identify the linear cost function equation

Identify the linear cost function equation


The Bover Company has provided the following information: 

	Units of Output	33,000 Units	46,200 Units
	Direct materials	$ 316,800	$ 443,520
	Workers' wages	1,188,000	1,663,200
	Supervisors' salaries	343,200	343,200
	Equipment depreciation	166,320	166,320
	Maintenance	89,760	121,440
	Utilities	422,400	580,800
	Total	$2,526,480	$3,318,480

Using the high-low method and the information provided above,
a.	identify the linear cost function equation and
b.	estimate the total cost at 38,000 units of output. 



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30 Mar 2016

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  1. Genius

    Identify the linear cost function equation

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