Yang Manufacturing, Which Uses the High-Low Method, Makes a Product

question 18

Multiple Choice

Yang Manufacturing, which uses the high-low method, makes a product called Yin. The company incurs three different cost types (A, B, and C) and has a relevant range of operation between 2,500 units and 10,000 units per month. Per-unit costs at two different activity levels for each cost type are presented below. $\begin{array}{|l|l|l|l|l|l|l|l|}\hline&\text { Type A}&&\text { Type B}&&\text { Type C}&&\text { Total } \\\hline 5,000 \text { units } & \$ 4 & & \$ 9 && \$ 4 & & \$ 17 \\\hline 7.500 \text { units } & \$ 4 && \$ 6 & &\$ 3 & & \$ 13 \\\hline\end{array}$ The cost formula that expresses the behaviour of Yang's total cost is:

• A)Y = $0 + $17X.
• B)Y = $20,000 + $13X.
• C)Y = $40,000 + $9X.
• D)Y = $45,000 + $4X.
• E)Y = $60,000 + $5X.

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Definitions:

Nonsexually Acquired

Nonsexually acquired refers to conditions, diseases, or infections obtained through means other than sexual contact.

Preovulatory Phase

Refers to the first part of the ovarian cycle during which follicles in the ovary mature. It ends with ovulation.

Follicle-Stimulating Hormone

Follicle-stimulating hormone is a gonadotropic hormone crucial for reproductive processes, stimulating the growth of ovarian follicles in females and sperm production in males.

Follicles

Small sacs in the skin or ovaries that contain a hair or an ovum, respectively, and play roles in growth and reproductive functions.