Yarrawonga Company Has Provided the Following Information Using the High-Low Method and the Information Provided Above:
A

question 51

Essay

Yarrawonga Company has provided the following information:
$\begin{array}{lrr}\text { Units of Output }&30000 \text { Units } &42000 \text { Units }\\\text { Direct materials } & \$ 180000 & \$ 252000 \\\text { Workers' wages } & 1080000 & 1512000 \\\text { Supervisors' salaries } & 312000 & 312000 \\\text { Equipment depreciation } & 151200 & 151200 \\\text { Maintenance } & 81600 & 110400 \\\text { Utilities } & \underline{384000} & \underline{528000} \\\text { Total } & \$ 2 \underline{188800} & \$ 2865600\end{array}$
Using the high-low method and the information provided above:
a.identify the linear cost function equation;and
b.estimate the total cost at 36 000 units of output.
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Definitions:

Mortgage Payment

Periodic payments made by a borrower to a lender, typically comprising both principal and interest, for the repayment of a mortgage loan.

Cause of Action

A set of facts sufficient to justify a right to sue to obtain money, property, or the enforcement of a right against another party.

Breach of Contract

The failure to perform any term of a contract, written or verbal, without a legitimate legal excuse.

Intended Beneficiary

An individual or group for whom a contract is specifically designed to benefit.