Question: Shum Manufacturing, which uses the high-low method, makes a product called Jpop. The company incurs three different cost types (A, B, and C) and

Shum Manufacturing, which uses the high-low method, makes a product called Jpop.

Shum Manufacturing, which uses the high-low method, makes a product called Jpop. 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. 5,000 7,500 units units Type A $ 4 Type B $ 9 $ 4 Total $ 17 4 6 3 13 The cost formula that expresses the behavior of Shum's total cost is:

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