Sterling Glass Company Uses the High-Low Method to Analyze Mixed

question 73

Multiple Choice

Sterling Glass Company uses the high-low method to analyze mixed costs. The following information relates to the production data for the first six months of the year.How should the cost function be properly stated?

• A) Y = $2,025 + $2.50H.
• B) Y = $3,890 + $2.00H.
• C) Y = $4,085 + $2.00H.
• D) Y = $5,260 + $2.50H.

---

Definitions:

Price Negotiations

entail bargaining between buyers and sellers to reach mutually agreeable terms for the price of goods or services.

Supply Management

The process of managing the acquisition of goods and services for an organization, focusing on optimizing cost, quality, and delivery.

Decrease Costs

The process or strategy of reducing the amount of money required for operations, production, or other activities within an organization.

Increase Revenues

The process of enhancing the income generated by a business through either increased sales, improved pricing strategies, or expanding market reach.