Given the Cost Formula Y = $12,000 + $6X,total Cost

question 86

Multiple Choice

Given the cost formula Y = $12,000 + $6X,total cost at an activity level of 8,000 units would be?

• A) $12,000.
• B) $20,000.
• C) $48,000.
• D) $60,000.

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Definitions:

Pricing Impact

The effect of pricing strategies on consumer demand, sales volume, and ultimately, company profitability.

Pricing Constraints

Limitations that affect how a company can set prices for its products or services, which may include costs, competition, demand, and legal issues.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a given time period.

Marketplace Conditions

The various factors and conditions that affect the dynamics of buyers and sellers in a particular market, including competition, customer demand, and regulatory environment.