Accounting 9706 · AS & A Level · Costs and cost behaviour

Costs and cost behaviour — practice question

A company has the following data for the cost of water used in its factory. Period 1: $222\,000$ units produced, water cost $\$166\,600$ Period 2: $173\,000$ units produced, water cost $\$151\,900$ Water costs are treated as a semi-variable cost. What would the water cost be when output is $185\,000$ units?

  • A$\$138\,833$
  • B$\$149\,171$
  • C$\$155\,500$
  • D$\$162\,436$

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