Write a Linear Cost Function Equation for Each of the Following

question 127

Essay

Write a linear cost function equation for each of the following conditions. Use y for estimated costs and X for activity of the cost driver.
a.Direct materials cost is $2.70 per pound
b.Total cost is fixed at $800 per month regardless of the number of units produced.
c.Auto rental has a fixed fee of $90.00 per day plus $1.75 per mile driven.
d.Machine operating costs include $1,000 of maintenance per month, and $15.00 of coolant usage costs for each day the machinery is in operation.

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Definitions:

Pap Test

A medical test performed on women to screen for cervical cancer by collecting cells from the cervix to identify any abnormalities.

Prenatal Visits

Regularly scheduled medical appointments during pregnancy to monitor the health of the mother and developing fetus.

Fundus

That portion of an organ most remote from its opening; with the uterus, the body of the uterus above the openings of the fallopian tubes.

HPV Test

A medical test that checks for the presence of the human papillomavirus, a virus that can lead to cervical cancer and other types of cancer.