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A Linear Cost Function Is Estimated Over the Relevant Range

Question 77

Multiple Choice

A linear cost function is estimated over the relevant range of 0 to 1,000 orders.The equation estimated is: Y = $25,000 + $89X where Y equals the total order-processing cost and X equals the number of orders.If the number of orders increases to 1,800,what is the predicted total order-processing cost?


A) $25,000
B) $160,200
C) $185,200
D) cannot be determined

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