Question 8

Susan is trying to decide whether or not to attend college during the next 12-week session. She has the following options:

1. Attend college full-time at a cost of $1,200.

2. Attend college part-time at a cost of $500 and work part-time earning $1,800.

3. Work full-time earning $5,000.

What is Susan's incremental profit if she chooses option 3 over option 2?

Question 9

Total costs were $72,200 when 25,000 units were produced and $97,500 when 35,000 units were produced. Use the high-low method to find the estimated total costs for a production level of 32,000 units.