Yang Manufacturing, Which Uses the High-Low Method, Makes a Product

question 63

Multiple Choice

Yang Manufacturing, which uses the high-low method, makes a product called Yin. The company incurs three different cost types (A, B, and C) and has a relevant range of operation between 2,500 units and 10,000 units per month. Per-unit costs at two different activity levels for each cost type are presented below. $\begin{array}{lcccc} & \text { Type A } & \text { Type B } & \text { Type C } & \text { Total } \\5,000 \text { units } & \$ 4 & \$ 9 & \$ 4 & \$ 17 \\7,500 \text { units } & \$ 4 & \$ 6 & \$ 3 & \$ 13\end{array}$ The cost formula that expresses the behavior of Yang's total cost is:

• A) Y = $0 + $17X.
• B) Y = $20,000 + $13X.
• C) Y = $40,000 + $9X.
• D) Y = $45,000 + $4X.
• E) Y = $60,000 + $5X.

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Definitions:

Torpedo Stage

A stage in plant embryo development characterized by the elongation of the embryo body, resembling the shape of a torpedo.

Triploid

An organism or cell having three sets of chromosomes, often resulting from the fertilization of an egg by two sperm, or a combination of a diploid and haploid organism.

Polar Nuclei

Two nuclei in the ovule of flowering plants that fuse with one sperm cell during double fertilization to form the triploid endosperm, nourishing the developing embryo.

Endosperm Tissue

A tissue in seed plants where nutrients are stored, providing nourishment to the developing embryo.