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.Tyler recently switched vendors and expects variable costs to rise by $1.00 per unit.However,with a new lease on the factory,Tyler expects fixed costs to drop by $300 per month.
After making the changes,what is Tyler's cost equation used to estimate total monthly costs?

A) Y = $2,700 + $0.25X
B) Y = $2,700 + $1.25X
C) Y = $2,700 + $2.25X
D) Y = $2,700 * $2.25X
E) None of the answer choices is correct.