Given the cost formula, Y = $16,000 + $3.40X, total cost for an activity level of 4,000 units would be:
A) $13,600
B) $3,600
C) $29,600
D) $16,000

Question

Quizplus · Accepted Answer

To find the total cost for an activity level of 4,000 units, we substitute X = 4,000 into the cost formula:
Y = $16,000 + $3.40X
Y = $16,000 + ($3.40 x 4,000)
Y = $16,000 + $13,600
Y = $29,600
Therefore, the total cost for an activity level of 4,000 units would be $29,600.

Given the Cost Formula, Y = $16,000 + $3