Demonstrate the cost formula that expresses the behaviour

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Question 1: Yang Manufacturing makes a product called Yin. The relevant range of operations is between 2 500 units and 10 000 units of Yin per month. Per unit costs at two activity levels are as follows: 5 000 units at $17.00 per unit; 7 500 units at $13.00 per unit. Determine the cost formula that expresses the behaviour of Yang's total costs:

Group of answer choices

Option 1: Y $60 000 + $5X

Option 2: Y $20 000 + $13X

Option 3: Y $45 000 + $4X

Option 4: Y $40 000 + $9X

Reference no: EM132528662

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