Question: Assume that a company has employed the high low method and estimated its cost function. The estimated cost function is Y = 3,000 + 5

Assume that a company has employed the high low method and estimated its cost function. The estimated cost function is Y = 3,000 + 5 X (X = number of units produced, Y = total cost). Which of he following is not true?

A.

If the company makes 900 units of the product, its estimated total variable cost will be $5.

B.

If the company makes 1,000 units of the product, its estimated total cost will be $8,000.

C.

If the company makes more unts of the product, its estimated total cost will be higher.

D.

If the company makes 600 units of the product, its estimated total fixed cost will be $3,000.

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