Commerce Corporation has a high probability of operating at 40,000 activity hours during the upcoming period, and lower probabilities of operating at 30,000 hours and 50,000 hours. The company's flexible budget revealed the following 30,000 Hours 40.000 Hours 50.000 Hours $135,000 720,000 $225,000 720 Variable costs Fixed costs 720,000 6. Commerce's flexible-budget formula where Y is defined as total cost and AH represents activity hours, is: A. Y = $4-50AH + $24AH. B. Y = $4.50A 1 + $720,000. C. Y = $22-50AH. D. Y $180,000 + $18AH. E. Y $945,000. 7. If Commerce operated at 35,000 hours, its total budgeted cost would be: A. $877,500. B. $945,000. C. $787,500. D. $997,500. E. $810,000