Shum Manufacturing, which uses the high-low method, makes a product called Kwan. The company incurs three different cost types (A, B, and C) and has a relevant range of operation between 3,100 units and 13,000 units per month. Per-unit costs at two different activity levels for each cost type are presented below.

Type A Type B Type C Total 6,200 units $4 $7 $5 $ 16 9,300 units 4 6 4 14 The cost formula that expresses the behavior of Shums total cost is:

TB MC Qu. 6-98 Shum Manufacturing, which uses the high-low method, makes... Shum Manufacturing, which uses the high-low method, makes a product called Kwan. The company incurs three different cost types (A, B, and C) and has a relevant range of operation between 3,100 units and 13,000 units per month. Per-unit costs at two different activity levels for each cost type are presented below. The cost formula that expresses the behavior of Shum's total cost is: Multiple Choice Y=$0+$16X. Y=$24,800+$14X Y=$55,800+$7X Y=$43,400+$4X Y=$62,000+$6X.