Answer the Following Questions Using the Information Below:
the Frontive

question 23

Multiple Choice

Answer the following questions using the information below:
The Frontive Company has assembled the following data pertaining to certain costs that cannot be easily identified as either fixed or variable. Frontive Company has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation.
$\begin{array}{rr}\text { Cost}&\text { Hours }\\\$ 24,700 & 5,000 \\26,000 & 5,500 \\34,000 & 7,500 \\45,370 & 10,300 \\38,000 & 9,500\end{array}$
-What is the cost function?

• A) y = $45,370 + $4.19X
• B) y = $24,700 + $4.40X
• C) y = $34,000 + $4.94X
• D) y = $5,200 + $3.90X

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Definitions:

Alveolar Ducts

Narrow passageways in the lungs that lead from the bronchioles to the alveolar sacs, where gas exchange occurs.

Alveolus

A tiny air sac in the lungs where the exchange of oxygen and carbon dioxide occurs during the process of breathing.

Terminal Bronchiole

The smallest airways in the lungs, preceding the alveolar ducts, that do not contain any cartilage or glands in their wall.

Respiratory Bronchiole

Smallest bronchiole (0.5 mm in diameter) that connects the terminal bronchiole to the alveolar duct.