given the cost formula, y = $7,000 + $1.80x, what would be the total cost for an activity level of 4,000…

given the cost formula, y = $7,000 + $1.80x, what would be the total cost for an activity level of 4,000 units?\na) $7,200\nb) $200\nc) $14,200\nd) $7,000

given the cost formula, y = $7,000 + $1.80x, what would be the total cost for an activity level of 4,000 units?\na) $7,200\nb) $200\nc) $14,200\nd) $7,000

Answer

Explanation:

Step1: Substitute the value of (X) into the formula

Given (Y = 7000+1.80X) and (X = 4000). Substitute (X = 4000) into the formula: (Y=7000 + 1.80\times4000).

Step2: Calculate the product

Calculate (1.80\times4000): (1.80\times4000=7200). So the formula becomes (Y = 7000+7200).

Step3: Calculate the sum

Calculate (7000 + 7200): (7000+7200=14200).

Answer:

C. ($14,200)