Problem
The Wildcat Company has provided the following information:
|
Direct materials
|
$180,000
|
$252,000
|
|
Workers' wages
|
1,080,000
|
1,512,000
|
|
Supervisors' salaries
|
312,000
|
312,000
|
|
Equipment depreciation
|
151,200
|
151,200
|
|
Maintenance
|
81,600
|
110,400
|
|
Utilities
|
384,000
|
528,000
|
|
Total
|
$2,188,800
|
$2,865,600
|
Using the high-low method and the information provided above, identify the linear cost function equation.