Author Question: Write a linear cost function equation for each of the following conditions. Use y for estimated ... (Read 54 times)

JMatthes · **on:** Mar 6, 2021

Write a linear cost function equation for each of the following conditions. Use y for estimated costs and X for activity of the cost driver.

a.	Direct materials cost is $2.70 per pound

b.	Total cost is fixed at $800 per month regardless of the number of units produced.

c.	Auto rental has a fixed fee of $90.00 per day plus $1.75 per mile driven.

d. Machine operating costs include $1,000 of maintenance per month, and $15.00 of coolant usage costs for each day the machinery is in operation.

Bigfoot1984 · **Reply #1 on:** Mar 6, 2021

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