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16 The Wildcat Company has provided the following information:

Units of Output 30,000 Units 42,000 Units
Direct materials $ 180,000 $ 252,000 Variable
Workers' wages 1,080,000 1,512,000 Variable
Supervisors' salaries 312,000 312,000 Fixed
Equipment depreciation 151,200 151,200 Fixed
Maintenance 81,600 110,400 Mixed
Utilities 384,000 528,000 Mixed
Total $2,188,800 $2,865,600

Using the high-low method and the information provided above,
a. identify the linear cost function equation and
b. estimate the total cost at 36,000 units of output.

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16 The Wildcat Company has provided the following information:

Units of Output 30,000 Units 42,000 Units
Direct materials $ 180,000 $ 252,000 Variable
Workers' wages 1,080,000 1,512,000 Variable
Supervisors' salaries 312,000 312,000 Fixed
Equipment ...

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