Write a Linear Cost Function Equation for Each of the Following

question 11

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 $.75 per kilo.
b.Direct labour cost is $16.75 per hour.
c.Car rental has a fixed fee of $75.00 per day plus $.50 per kilometre driven.
d.Machine operating costs include $350 of maintenance per month,and $5.00 of coolant usage costs for each day the machinery is in operation.
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Definitions:

Personal Tax Rate

The percentage of an individual's income that is paid to the government in taxes.

Corporate Tax Rate

The percentage of a corporation's income that is paid to the government as tax.

Leverage Value

Refers to the use of financial leverage or borrowing to increase the potential return of an investment, enhancing the value for shareholders.

Free Cash Flows

The amount of cash a company generates after accounting for capital expenditures needed to maintain or expand its asset base.