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

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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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
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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