At an activity level of 6,000 units the cost for maintenance is $7,200 and at 10,000 units the cost for maintenance is $11,600. Using the high-low method, the cost formula for maintenance is: Group of answer choices

y = $1.10x + $600

Explanation:

Step 1 : Variable Cost calculation

Variable Cost = ($11,600 - $7,200) ÷ (10,000 - 6,000)

                        = $1.10

Step 2 : Fixed Cost calculation

Total cost = Variable Cost + Fixed Cost

hence,

Fixed Cost = Total Cost - Variable Cost

                   = $11,600 - (10,000 x $1.10)

                   = $600

Step 3 : Cost formula for maintenance

Total cost = Variable Cost + Fixed Cost

therefore,

y = $1.10x + $600

where,

y = Total cost

x = Activity level

Using the high-low method, the cost formula for maintenance is : y = $1.10x + $600

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi