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In Alpha manufacturing company, the machine hours for one month amounted 1,000 and total cost of maintenance amounted $5,000. If the machine hours (cost driver)

In Alpha manufacturing company, the machine hours for one month amounted 1,000 and total cost of maintenance amounted $5,000. If the machine hours (cost driver) is duplicated, the total cost will increase by 50%.

Required:

1.Estimate the cost function and comment on it.

2.Estimate the machine hours if total cost of maintenance amounted $10000.

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