Exhibit 5-1
Presented Below Are the Production Data for the Mixed

question 17

Multiple Choice

Exhibit 5-1
Presented below are the production data for the mixed costs incurred by Clarion Company.
$$\begin{array} { l r r } \text { Muoth } & \text { Cast } & \text { Units } \\\text { March } & \$ 4,700 & 3,700 \\\text { April } & 7,200 & 5,050 \\\text { May } & 5,565 & 4,725 \\\text { June } & 9,500 & 8,500 \\\text { July } & 7,915 & 6,745 \\\text { August } & 8,300 & 7,500\end{array}$$ Clarion Company uses the high-low method to estimate mixed costs.
-Refer to Exhibit 5-1.How would the cost function be stated using the high-low method?

• A)Y = $3,700 + $1.00X
• B)Y = $9,500 + $1.00X
• C)Y = $1,000 + $1.00X
• D)Y = $3,700 + $1.10X
• E)None of the answer choices is correct.

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