Thursday, June 23, 2011

For January, the cost components of a picture frame include $0.35 for the glass, $.65 for the wooden frame, and $0.80 for assembly

ACCOUNTING

Multiple Choice

For January, the cost components of a picture frame include $0.35 for the glass, $.65 for the wooden frame, and $0.80 for assembly. The assembly desk and tools cost $400. 1,000 frames are expected to be produced in the coming year. What cost function best represents these costs?

a. y = 1.80 + 400X

b. y = 400 +1.80X

c. y = 2.20 + 1,000X

d. y = 1.00 + 400X

Click here for the SOLUTION

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