Answer the Following Questions Using the Information Below:
Syosis Company

question 20

Multiple Choice

Answer the following questions using the information below:
Syosis Company uses the high-low method to estimate its cost function. The information for 2015 is provided below:
$\begin{array}{lll}&\text { Machine-hours }& \text { Costs }\\\text { Highest observation of cost driver } & 2,500 & \$ 300,000 \\\text { Lowest observation of cost driver } & 1,500 & \$ 220,000\end{array}$
-What is the slope coefficient?

• A) $120.00
• B) $147.00
• C) $80.00
• D) $130.00

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Definitions:

Satisfaction Maximized

The point at which an individual achieves the highest level of satisfaction or utility from the consumption of goods or services.

Consumption Change

A variation in the total amount of goods and services that households and individuals are willing and able to consume over a certain period.

MRS

The Marginal Rate of Substitution is the rate at which a consumer is willing to exchange units of one good for units of another good while maintaining the same level of utility.

Marginal Utility

Marginal utility is the additional satisfaction or utility that a consumer receives from consuming one more unit of a good or service.