Ponszko Nursery Used High-Low Data from June and July to Determine

question 148

Multiple Choice

Ponszko Nursery used high-low data from June and July to determine its variable cost of $12 per unit.Additional information follows: $\begin{array}{llr}\text { Month }&\text { Units produced }&\text { Total costs }\\\text { June } & 2,000 & \$ 32,000 \\\text { July } & 1,000 & 20,000\end{array}$ If Ponszko's produces 2,300 units in August, how much is its total cost expected to be?

• A)$8,000
• B)$39,600
• C)$27,600
• D)$35,600

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