Pearson Electric Company Uses the High-Low Method to Analyze Mixed

question 3

Multiple Choice

Pearson Electric 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 = $6,025 + $2.00H.
• B)Y = $6,520 + $3.00H.
• C)Y = $6,085 + $2.00H.
• D)Y = $6,250 + $3.00H. Unit variable cost = ($9,460 - $7,300)/(980 - 260)= $3.00.Fixed cost = $9,460 - (980 x $3.00)= $6,520 or $7,300 - (260 x $3.00)= $6,520

---

Definitions:

Racial and Ethnic Diversity

The inclusion and representation of various racial and ethnic groups within a community, organization, or society.

Generation X

The demographic cohort following the Baby Boomers and preceding Millennials, generally defined as individuals born from the early-to-mid 1960s to the early 1980s.

Corporate Social Responsibility

A business model that helps a company be socially accountable—to itself, its stakeholders, and the public.

Environmental Stewardship

The responsible use and protection of the natural environment through conservation and sustainable practices.