Question 10

Sterling Glass Company uses the high-low method to analyze mixed costs. The following information relates to the production data for the first six months of the year. Month Cost Hours January $4,515 300 February $4,825 400 March $5,540 550 April $4,485 200 May $5,685 800 June $5,230 500

How should the cost function be properly stated? Y = $2,025 + $2.50H. Y = $3,890 + $2.00H. Y = $4,085 + $2.00H. Y = $5,260 + $2.50H.