1. Exercise 7-30
Page: 284
V.C
=
High cost – Low cost
High activity – Low activity
V.C
=
12,500
–
11,000
20,000
–
8,000
V.C
=
0.125 per miles
………………………………………………………………………………………………………………………………………..
F.C
=
High cost - ( high activity X V.C per unit)
F.C
=
12,500 - (20,000 X 0.125)
F.C
=
10,000
………………………………………………………………………………………………………………………………………
TC
=
TFC
+
TVC
Y
=
Y
Y
=
=
a
10,000
12,750
+
bx
+
0.125 x 22,000