Answer
Formula :
Y= a + bX
a= the fixed cost
b= the variable cost per unit
Work Step by Step
In other words:
Total Cost= Fixed Cost + Variable Cost * level of activity
Managerial Accounting (15th Edition)
by Garrison, Ray; Noreen, Eric, Brewer, Peter
Published by
McGraw-Hill Education
ISBN 10:
007802563X
ISBN 13:
978-0-07802-563-1
Chapter 2 - Managerial Accounting and Cost Concepts - Questions - Page 51: 2-12
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