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Burgerville Co Has Observed That at an Activity Level of 5000

Question 21

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Burgerville Co has observed that at an activity level of 5000 units the maintenance cost is $6500,and at 10 000 units the maintenance cost is $9000.Using the high-low method,the cost formula for maintenance is: a. $4000+$50x\$ 4000 + \$ 50 \mathrm { x } units
b. $3500+$60x\$ 3500 + \$ 60 \mathrm { x } units
c. $2000+$.70x\$ 2000 + \$ .70 x units
d. $1.30/\$ 1.30 / unit

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