15. Given the cost formula Y S12,500 + $5.00XX, total cost for an activity level of 4,000 units would be A) $20,000 B) S12,500 c) S16,000 D) $32,500 16. The following data pertains to activity and maintenance costs for two recent years: Year 2 1,125 $6,250 Year1 Activity level in units Maintenance cost 6,000 $4,200 If the high-low method is used to separate fixed and variable components of the cost, which of the following statements is correct? A) The variable cost is $0.70 per unit of activity C) The variable cost is $2.50 per unit of activity B) The fixed cost is $2,050 D) The fixed cost is $1,800 17. The following data relate to two levels of activity at an out-patient clinic in a hospital: Number of patient-visits General overhead 4,500 $269,750 $289,125 S,750 The best estimate of the variable general overhead cost per patient-visit is closest to C) S59.94 D) $50.28 B) $44.44 A) $15.50 18. Dizzy gives out a free T-shirt to every 100th customer entering the park. The cost of this T-shirt would best be described as a: A) Fixed cost B) mixed cost C) step-variable cost D) true variable cost 19. Contribution margin is: A) Sales less cost of goods sold. B) Sales less variable production, variable administrative expenses. C) Sales less variable production expense. D) Sales less all variable and fixed expenses selling, and variable 20 At a sales level of $365,000, Lewis Company's gross margin is $20,000 less than its contribution margin, its net operating income is $70,000, and its selling and administrative expenses total $130,000 At this sales level, its contribution margin would be C) $220,000 D) $200,000 A) $295,000 B) S180,000