Answer the Following Questions Using the Information Below:
the Tamworth

question 140

Multiple Choice

Answer the following questions using the information below:
The Tamworth Company uses the high-low method to estimate the cost function.The information for 2018 is provided below:
$$\begin{array} { l c c } & \text { Machine-hours } & \text { Labour Costs } \\\text { Highest observation of cost driver } & 800 & \$ 20000 \\\text { Lowest observation of cost driver } & 480 & \$ 13600\end{array}$$
-What is the estimate of the total cost when 600 machine-hours are used?

• A)$4000
• B)$8000
• C)$12 000
• D)$16 000

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Definitions:

Income

The total amount of money received by an individual or group over a specific time period, coming from various sources like wages, investments, or government assistance.

Apples

Edible fruits produced by an apple tree, characterized by their sweet taste and crisp texture, consumed worldwide.

Bananas

Edible fruits from plants of the genus Musa, commonly enjoyed worldwide and known for their nutritional value.

Utility Function

A representation in economics of how consumers rank different bundles of goods based on the level of satisfaction or utility they provide.