The Atlanta Company has assembled the following data pertaining to certain costs that cannot be easily identified as either fixed or variable. Atlanta Company has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation. Cost Hours $24,000 5,000 $26,100 6,300 $34,700 7,900 $48,000 11,000 $38,300 9,250 What is the cost function

Total cost= 4,000 + 4x

x= hours

Explanation:

Giving the following information:

Cost Hours

$24,000 5,000

$26,100 6,300

$34,700 7,900

$48,000 11,000

$38,300 9,250

First, we need to calculate the unitary variable cost and fixed cost. We will use the following formulas:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (48,000 - 24,000) / (11,000 - 5,000)

Variable cost per unit= $4 per unit

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 48,000 - (4*11,000)

Fixed costs= $4,000

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 24,000 - (4*5,000)

Fixed costs= $4,000

Now, we can express the cost formula:

Total cost= 4,000 + 4x

x= hours

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.