3. Anron Manufacturing produces a product which has 3 different costs and a relevant range between 2,500 units and 10,000 units per month. Per-unit costs at two different activity levels for each cost are presented below. Cost A Cost B Cost C Total $4 $4 $10 $8 $4 $2.50 $18 $14.50 5,000 units 8,500 units The cost formula that expresses the behavior of Anron's total cost is: A) Y = $0 + $18X B) Y = $20,000 + $14.5X C) Y = ŠA0.000 + Ś10X
3. Anron Manufacturing produces a product which has 3 different costs and a relevant range between 2,500 units and 10,000 units per month. Per-unit costs at two different activity levels for each cost are presented below. Cost A Cost B Cost C Total $4 $4 $10 $8 $4 $2.50 $18 $14.50 5,000 units 8,500 units The cost formula that expresses the behavior of Anron's total cost is: A) Y = $0 + $18X B) Y = $20,000 + $14.5X C) Y = ŠA0.000 + Ś10X
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter7: Proudction Costs
Section: Chapter Questions
Problem 8SQP
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Question
![3. Anron Manufacturing produces a product which has 3 different costs and a relevant
range between 2,500 units and 10,000 units per month. Per-unit costs at two different
activity levels for each cost are presented below.
Cost A
Cost B
Cost C
Total
5,000 units
8,500 units
$4
$4
$10
$8
$4
$2.50
$18
$14.50
The cost formula that expresses the behavior of Anron's total cost is:
A) Y = $0 + $18X
B) Y = $20,000 + $14.5X
C) Y = $40,000 + $10X
D) Y = $50,000 + $4X
E) Y = $42,500 + $9.5X
%3D
%3D](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb3c72369-44b3-47dd-882a-c452c7862f55%2Ffd25c0d6-d83f-4315-9ad1-002664b5b8fb%2Fzmfnaoi_processed.png&w=3840&q=75)
Transcribed Image Text:3. Anron Manufacturing produces a product which has 3 different costs and a relevant
range between 2,500 units and 10,000 units per month. Per-unit costs at two different
activity levels for each cost are presented below.
Cost A
Cost B
Cost C
Total
5,000 units
8,500 units
$4
$4
$10
$8
$4
$2.50
$18
$14.50
The cost formula that expresses the behavior of Anron's total cost is:
A) Y = $0 + $18X
B) Y = $20,000 + $14.5X
C) Y = $40,000 + $10X
D) Y = $50,000 + $4X
E) Y = $42,500 + $9.5X
%3D
%3D
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