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

Question

Quizplus · Accepted Answer

To find the level of activity at which total cost will be $42,500, we need to substitute the given value of total cost ($42,500) in the formula and solve for X:
$42,500 = $17,500 + $4X
$25,000 = $4X
X = 6,250 units
Therefore, the answer is option C.

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