1. following representations in this equation is correct?

1. The term represents the variable cost in total.
2. The X term represents total costs.
3. The b term represents the variable cost per unit of activity.
4. The Y term represents total fixed costs.

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2. The following data pertain to activity and costs for two months:

	June	July
Activity level in units	10,000	20,000
Variable costs	$20,000	?
Fixed costs	15,000	?
Mixed costs	10,000	?
Total costs	$45,000	$95,000

Assuming that these activity levels are within the relevant range, what were the mixed costs for July?

1. $15,000.
2. $10,000.
3. $40,000.
4. $35,000.

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