Given the cost formula Y = $12,000 + $6X, total cost at an activity level of 8,000 units would be?
A)$60,000.
B)$20,000.
C)$12,000.
D)$48,000.

Question

Quizplus · Accepted Answer

The total cost formula is Y = $12,000 + $6X, where $12,000 is the fixed cost and $6 is the variable cost per unit. For 8,000 units, the total cost is calculated as $12,000 + ($6 * 8,000) = $12,000 + $48,000 = $60,000.

Given the Cost Formula Y = $12,000 + $6X, Total