Question

The Aust Corporation has gathered the following data on its copy machine costs for the first eight months of the year. Month January February March April May June July August Number of Copies 46,000 42,000 58,000 64,000 57.000 62,000 68,000 71,000 Total Copy Cost $4,600 $4,400 $5,300 $6,300 $5,000 $5,800 $6,500 $7,300

Answer 1

Highest number of copies less: Lowest number of copies Difference Units Total Cost 71,000 $ 7,300 42,000 $ 4,400 29,000 $ 2,900 Variable Cost per unit (m) = $ $ 2,900 / 29000 0.10 per unit Fixed Cost (b) ( 42000 units) = $ $ $ 4,400 - ( 42000 x $ 0.10) 4,400 $ 4,200 200 Cost Equation y = $ $ 0.10 X + $ 4,200

In case of any doubts or Issues, please do comment below