Yang Manufacturing Makes A Product Called Yin The Relevant Range Of Operations I
Yang Manufacturing makes a product called Yin. The relevant range of operations is between 2500 units and 10 000 units of Yin per month. Per unit costs at two activity levels are as follows: 5000 units at $17.00 per unit; 7500 units at $13.00 per unit. Determine the cost formula that expresses the behaviour of Yang’s total costs: A.
Y $60 000 + $5X
Y $20 000 + $13X
Y $45 000 + $4X
Y $40 000 + $9X
The correct answer is A. Please explain