Answer the Following Questions Using the Information Below:
the Nowra

question 75

Multiple Choice

Answer the following questions using the information below:
The Nowra Company has assembled the following data pertaining to certain costs that cannot be easily identified as either fixed or variable.Nowra Company has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation.
$$\begin{array} { l r r } \text { Month } & \text { Cost } & \text { Hours } \\\text { January } & \$ 40000 & 3500 \\\text { February } & 24400 & 2000 \\\text { March } & 31280 & 2450 \\\text { April } & 36400 & 3000 \\\text { May } & 44160 & 3900 \\\text { June } & 42400 & 3740\end{array}$$
-How is the cost function stated?

• A)y = $21 360 + $1.52X
• B)y = $10 112 + $8.64X
• C)y = $26 672 + $1.84X
• D)y = $3600 + $10.40X

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Definitions:

Entrepreneur's Potential Earnings

The forecasted income an entrepreneur can expect from their business venture, taking into account risks and opportunities.

Annual Lease

A contract for the rental of property, typically real estate, that lasts for one year.

Payments to Workers

Payments to workers include salaries, wages, benefits, and other compensation provided to employees in exchange for their labor.

Entrepreneur's Forgone Interest

The potential interest income an entrepreneur sacrifices by investing their own money into their business instead of depositing it for interest.