Given the cost formula Y = $15,000 + $5X, total cost at an activity level of 8,000 units would be?
A)$40,000.
B)$55,000.
C)$23,000.
D)$15,000.

Question

Quizplus · Accepted Answer

To find the total cost at an activity level of 8,000 units, we substitute X = 8,000 into the cost formula Y = $15,000 + $5X:
Y = $15,000 + $5(8,000) = $15,000 + $40,000 = $55,000.
Therefore, the total cost at an activity level of 8,000 units would be $55,000. Answer choice B is correct.

Given the Cost Formula Y = $15,000 + $5X, Total