Given the Cost Formula Y = $15,000 + $5X,total Cost

question 109

Multiple Choice

Given the cost formula Y = $15,000 + $5X,total cost at an activity level of 8,000 units would be:

• A)$23,000
• B)$15,000
• C)$55,000
• D)$40,000

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Definitions:

Selling

Expenses incurred directly and indirectly in making sales, including advertising, sales commissions, and the cost of sales personnel.

Administrative Expenses

Overhead or indirect costs related to the general operation of a company, such as office supplies, legal fees, and management salaries.

Planning Budget

A financial plan that estimates the revenues and expenditures for a certain period of time in advance.

Personnel Expenses

Costs associated with employing staff, including salaries, benefits, training, and taxes.