Quantum Company Uses the High-Low Method to Estimate the Cost

question 135

Multiple Choice

Quantum Company uses the high-low method to estimate the cost function.The information for 2017 is provided below:

What is the estimated cost function for the above data?

• A)y = 26,000 + 62.00X
• B)y = 6,000 + 50.00X
• C)y = 36,000 + 60.00X
• D)y = 30,000 + 65.00X

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Definitions:

Oldest Oceanic Crust

The most ancient sections of Earth's oceanic crust, markedly older than most other ocean floor areas, typically found in the deep ocean basins.

Plate Boundary

The edges where two or more of Earth's tectonic plates meet, which are zones of seismic and volcanic activity.

Seafloor Spreading

The formation of fresh oceanic crust at mid-ocean ridges, which gradually drifts away from the ridge, aiding in the movement of continents.

Magnetic Stripe

Linear patterns of magnetism found on the seabed that are parallel to ocean ridges, providing evidence for the theory of plate tectonics.