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

question 38

Multiple Choice

Ponszko Nursery used high-low data from June and July to determine its variable cost of $12 per unit.Additional information follows: $$\begin{array} { l c c } \text { Month } & \text { Units produced } & \text { Total costs } \\\hline \text { June } & 2,000 & \$ 32,000 \\\text { July } & 1,000 & 20,000\end{array}$$ If Ponszko's produces 2300 units in August how much is its total cost expected to be?

• A)$8000
• B)$39600
• C)$27600
• D)$35600

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