Use the figure below to answer the following question. 
Figure 1A.5.4
-Refer to Figure 1A.5.4.The graph shows the relationship between two variables,x and y.This relationship is described by the equation
Definitions:
Variable Costs
Costs that fluctuate in direct proportion to changes in production volume or activity level.
Fixed Costs
Expenses that do not change with the level of production or sales activities, such as rent, salaries, and insurance.
Direct Labor Budget
A financial plan that estimates the cost of direct labor required to meet production goals.
Budgeted Production
The total number of units a company plans to produce in a specific period, according to its budget.
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