Reference no: EM133001128

C-Drive Components has collected the following production data for the past four months:

Units produced         Total cost

7,000                        $16,500

10,000                         22,500

8,500                          17,750

9,000                            21,000

Problem 1: If the high-low method is used, what is the monthly total cost equation?

Option 1: Total cost = $2,500 + ($2.00 × units produced)

Option 2: Total cost = $3,750 + ($2.75 × units produced)

Option 3: Total cost = $1,500 + ($2.00 × units produced)

Option 4: Total cost = $500 + ($2.25 × units produced)