1. ou are using the following information to estimate costs:

Month	Units	Cost per unit
June	2,50	$20,00
July	1,000	$50,00
Augustt	4,000	$12,50

What type of costs are these?

a. Fixed

b. Variable

c. Mixed

d. Nonlinear

e. None of the answer choices is correct.

Exhibit 5-1

Presented below are the production data for the mixed costs incurred by Clarion Company.

Monts	Cost	Units
march	$4,700	3,700
April	7,200	5,050
may	5,565	4,725
June	9,500	8,50
july	7,915	6,745
August	8,300	7,50

Clarion Company uses the high-low method to estimate mixed costs.

Refer to Exhibit 5-1. How would the cost function be stated using the high-low method?

a. Y = $3,700 + $1.00X

b. Y = $9,500 + $1.00X

c. Y = $1,000 + $1.00X

d. Y = $3,700 + $1.10X

e. None of the answer choices is correct.

3. Refer to Exhibit 5-1. What is the estimated total mixed cost at an operating level of 7,000 units?

a. $10,700

b. $16,500

c. $7,700

d. $8,000

e. None of the answer choices is correct.

4. 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.