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Presented below are the production data for the first six months of the year for the mixed costs incurred by Vertise Company; Month Cost Units

  1. Presented below are the production data for the first six months of the year for the mixed costs incurred by Vertise Company;

Month

Cost

Units

January

$4,890

4,100

February

4,426

3,520

March

6,730

5,200

April

9,724

8,250

May

5,900

4,900

June

7,336

6,600

Vertise Company uses the high-low method to analyze mixed costs. How would the cost function be stated?

  1. Y = $7,850 + $1.18X
  2. Y = $2,388 + $1.12
  3. Y = $5,298 + $1.19X
  4. Y = $484 +$1.12X
  5. None of the above

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