The Following Data Has Been Assembled for Hippy Company The Cost Function Is Stated as _____

question 63

Multiple Choice

The following data has been assembled for Hippy Company.Use the high-low method. $$\begin{array}{l}\text { Cost }& \text { Hours } \\\$ 24,400 & 2,000 \\37,000 & 2,300 \\34,280 & 2,850 \\36,400 & 3,600 \\44,160 & 3,900\end{array}$$ The cost function is stated as _____.

• A)Y = $26,672 + $1.84X
• B)Y = $21,360 + $1.52X
• C)Y = $10,112 + $8.64X
• D)Y = $3,600 + $10.40X

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Definitions:

Capacity Allocation

The process of distributing available resources or capacity among various operations, processes, or production orders to maximize efficiency and meet demand.

Intermediate Future

A period that lies between the near future and the distant future, often used in the context of forecasting or planning over a few years to a decade.

Perishable Inventory

Items or goods that have a limited lifespan or shelf life, requiring careful inventory management to minimize losses due to spoilage or obsolescence.

Yield Management

A pricing strategy that uses understanding of consumer behavior and market demand to maximize revenue, often used in the airline and hotel industries.