A department of Delta Company incurred the following costs for the month of June. Variable costs, and the variable portion of mixed costs, are a function of the number of units of activity:

Activity level in units	10,000
Variable costs	$ 20,000
Fixed costs	60,000
Mixed costs	40,000
Total costs	$ 120,000

During July, the activity level was 16,000 units, and the total costs incurred were $141,000.

B. Use the highlow method to calculate the cost formula for mixed cost.

Use the highlow method to calculate the cost formula for mixed cost. Note: Do not round intermediate calculations. Round your answers to 2 decimal places.

Cost formula =

+

per unit