Homework Answers
| Variable cost is = (Change in cost/Change in hours) |
| Variable cost is = ((10000-8400)/(22000-16000)) |
| Variable cost is = 0.266667 |
| Variable cost is = 0.27 |
| Fixed cost is = Total cost - Variable cost |
| Fixed cost is = (8400-(0.27*16000)) |
| Fixed cost is = $ 4,060 |
| Function is "y" = $ 0.27 X + $ 4,060 |
| Answer is Option C) |
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