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Yang Manufacturing, which uses the high-low method, makes a product called Yin. The company incurs three different cost types (A, B, and C) and has
Yang Manufacturing, which uses the high-low method, makes a product called Yin. The company incurs three different cost types (A, B, and C) and has a relevant range of operation between 2,500 units and 10,000 units per month. Per-unit costs at two different activity levels for each cost type are presented below. Type A Type B 5,000 units 7,500 units Type C $4 $3 Total $17 $13 $6 The cost formula that expresses the behavior of Yang's total cost is: OY $0+ $17%. O Y = $20,000+ $13X. O Y = $40,000 + $9X. OY - $45,000 + $4x O Y= $60,000 + $5X
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