Given the cost formula Y = $17,500 + $4X, at what level of activity will total cost be $42,500?
A)10,625 units.
B)6,250 units.
C)4,375 units.
D)5,250 units.

Question

Quizplus · Accepted Answer

To find the level of activity (X) that results in a total cost (Y) of $42,500, we can substitute Y with $42,500 in the cost formula and solve for X: $42,500 = $17,500 + $4X. Subtracting $17,500 from both sides gives $25,000 = $4X. Dividing both sides by $4 gives X = 6,250 units.

Given the Cost Formula Y = $17,500 + $4X, at What