Write a Linear Cost Function Equation for Each of the Following

question 53

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 $1.30 per kilogram.
b.Direct labour cost is $19.20 per hour.
c.Auto rental has a fixed fee of $20.00 per day plus $.40 per kilometre driven.
d.Machine operating costs include $500 of maintenance per month, and $2 of coolant usage costs for each day the machinery is in operation.

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Definitions:

Upper Quintiles

Refers to the top 20% of the population in terms of income distribution, often used in studies of social, economic, and wealth stratification.

Income

The income earned, particularly in consistent intervals, from employment or investment returns.

Upper Quintile

Refers to the top 20 percent of the population or distribution in terms of income, wealth, or another statistical measure.

Income

The financial earnings received by an individual or entity, typically in the form of wages, salaries, or investments.