Question: 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

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 2,600 units and 12,000 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=$72,800+$10x Y=$52,000+$7x Y=$83,200+$8X. Y=$0+$24X The cost formula that expresses the behavior of Shum's total cost is: Multiple Choice Y=$72,800+$10X y=$52,000+$7x Y=$83,200+58X Y=$0+$24x Y=$36,400+$21X
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