Which of the following is the total mixed cost equation for a factory where machine operating costs include $300,000 of machine depreciation per year,plus $70 of utility costs for each day the machinery is in operation?
A)Y = $300,000 + $70X
B)Y = 300,000X
C)Y = $70X
D)Y = $300,000 - $70X
E)None of the answer choices is correct.

Question

Quizplus · Accepted Answer

The total mixed cost equation includes both a fixed cost component of $300,000 in machine depreciation and a variable cost component of $70 for each day the machinery is in operation. Therefore, the equation is Y = $300,000 + $70X, where X represents the number of days the machinery is in operation.

Which of the Following Is the Total Mixed Cost Equation