Exhibit 5-5 Tyler Incorporated Sells 5,000 Units Per Month with the Following

Multiple Choice

Exhibit 5-5
Tyler Incorporated sells 5,000 units per month with the following costs:
Variable costs: $1.25 per unit
Fixed costs: $3,000 per month
-Refer to Exhibit 5-5.What is Tyler's cost equation used to estimate total monthly costs?

A) Y = $3,000 + $1.25X
B) Y = $3,000 - $1.25X
C) Y = $3,000 / $1.25X
D) Y = $3,000 + $1.25 + 5,000X
E) None of the answer choices is correct.