Presented Below Is the Production Data for the First Six

question 12

Multiple Choice

Presented below is the production data for the first six months of the year showing the mixed costs incurred by Andrew Company. $$\begin{array} { l c c } \text { Month } & \underline { \text { Cost } } & \underline { \text { Units } } \\\text { July } & \$ 5,890 & 4,100 \\\text { August } & 4,024 & 3,200 \\\text { September } & 7,480 & 6,300 \\\text { October } & 8,840 & 7,500 \\\text { November } & 5,800 & 5,800 \\\text { December } & 7,336 & 6,600\end{array}$$ Andrew Company uses the high?low method to analyze mixed costs.The cost function is stated as _____.

• A)Y = $440 + $1.12X
• B)Y = $3,562.30 + $0.144X
• C)Y = $107.20 + $1.416X
• D)Y = $7,850 + $0.132X

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Definitions:

Substitutes

Goods or services that can replace each other in use or consumption, such that an increase in the price of one leads to an increase in demand for the other.

Marginal Revenue

Marginal revenue is the additional revenue that a firm gains from selling one more unit of a good or service.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded by consumers at those prices.

Price

The cost in money to purchase a particular good or service.