The total mixed cost line can be expressed
as an equation: Y = a + bX
Where: Y=The total mixed cost.
a=The total fixed cost (the
vertical intercept of the line).
b=The variable cost per unit of
activity (the slope of the line).
X=The level of activity.
Sheet1
| The total mixed cost line can be expressed | |||||
| as an equation: Y = a + bX | |||||
| Where: | Y | = | The total mixed cost. | ||
| a | = | The total fixed cost (the | |||
| vertical intercept of the line). | |||||
| b | = | The variable cost per unit of | |||
| activity (the slope of the line). | |||||
| X | = | The level of activity. |
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