Denver Manufacturing
Denver Manufacturing Would Like to Do a Better

Multiple Choice

Denver Manufacturing
Denver Manufacturing would like to do a better job budgeting for maintenance costs and, consequently, they have prepared a schedule showing maintenance costs and units produced for the past five months as follows:
$\begin{array}{lcc} & \begin{array}{c}\text { Number of } \\\text { units produced }\end{array} & \begin{array}{c}\text { Total } \\\text { maintenance costs }\end{array} \\\hline \text { January } & 5400 & \$ 4800 \\\text { February } & 6600 & 5180 \\\text { March } & 4900 & 4500 \\\text { April } & 5600 & 4900 \\\text { May } & 6000 & 5490\end{array}$
-Using the high/low method,what is the cost equation to predict total maintenance costs?

A) Y = $90 + $.90x
B) Y = $2540 + $.40x
C) Y = $1646 + $.5824x
D) Y = $2.50x - $11 320