jones Co. had the following data for units produced and maintenance costs in each of the four quarters of their prior fiscal year:

QUARTER 1: 48 units and $110

QUARTER 2: 58 units and $126

QUARTER 3: 44 units and $105

QUARTER 4: 54 units and $119

6. Using the High-Low Method, the slope of the budget line would be

a. $1.50

b. $2.00

c. $2.25

d. $2.50

7. Using the High-Low Method and your answer from #6 above, calculate the fixed costs (Y-intercept) for the budget line

a. $43

b. $39

c. $41

d. $37

The following data applies to questions 8 and 9:

Jackson Co. had the following data for units produced and maintenance costs in each of the four quarters of their prior fiscal year:

QUARTER 1: 10 units and $61

QUARTER 2: 13 units and $73

QUARTER 3: 9 units and $60

QUARTER 4: 12 units and $70

8. Using the Linear Regression Method, the slope of the budget line would be

a. $3.00

b. $3.25

c. $3.50

d. $3.75

9. Using the Linear Regression Method and your answer from #8 above, calculate the fixed costs (Y-

intercept) for the budget line

a. $23.50

b. $28.75

c. $27.50

d. $25.75

10. The cost budget formula for a particular mixed cost is: $450 + ($1.85 x units). The total budgeted

cost for a volume of 2,500 units would be:

a. $4,875

b. $5,625

c. $4,625

d. $5,075