Baker Enterprises developed a cost function for manufacturing overhead costs of Y = $8,000 + $1.60X.What are the estimated manufacturing overhead costs at 10,000 units of production?
A)$16,000
B)$17,600
C)$24,000
D)$26,000

Question

Quizplus · Accepted Answer

The cost function is Y = $8,000 + $1.60X. For 10,000 units, X = 10,000. So, Y = $8,000 + $1.60(10,000) = $8,000 + $16,000 = $24,000.

Baker Enterprises Developed a Cost Function for Manufacturing Overhead Costs