Question: What are the linear cost function equations for each of the following conditions? Use Y for estimated costs and X for activity of the cost
What are the linear cost function equations for each of the following conditions? Use Y for estimated costs and X for activity of the cost driver. Utilities have a minimum charge of $12,000, plus a charge of $0.20 per kilowatt-hour, and Machine operating costs include $500,000 of machine depreciation per year, plus $200 of utility costs for each day the machinery is in operation. A. Y = $12,000+ $0.20X and Y=$500,000 + S200X B. X =$ 12,000Y + $0.20Y and X = $500,000 Y +$200Y C. Y=$12,000X + $0.20 and Y = $500,000X + $200 Y D. None of these
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