The Bover Company Has Provided the Following Information Using the High-Low Method and the Information Provided Above,
A

question 105

Essay

The Bover Company has provided the following information:
$\begin{array}{lrr}\text { Units of Output } & 33,000 \text { Units } &46,200 \text { Units }\\\text { Direct materials } & \$ 316,800 & \$ 443,520 \\\text { Workers' wages } & 1,188,000 & 1,663,200 \\\text { Supervisors' salaries } & 343,200 & 343,200 \\\text { Equipment depreciation } & 166,320 & 166,320 \\\text { Maintenance } & 89,760 & 121,440 \\\text { Utilities } & 422,400 & 580,800 \\\text { Total } & \$ 2,526,480 & \$ 3,318,480\end{array}$ Using the high-low method and the information provided above,
a.identify the linear cost function equation and
b.estimate the total cost at 38,000 units of output.