7. Presented below is the production data for six months showing the mixed costs incurred by Anderson Company. MonthCostUnits

July$5,8904,100

August$4,0123,200

September$7,4806,300

October$9,0007,500

November$5,8005,800

December$7,3366,600

Anderson Company uses the high-low method to analyze mixed costs. The cost function is where Y= Total Cost and X= Number of units.

A) Y = $440 + $1.12X B) Y = $300 + $1.16X

C) Y = $440 + $1.20X D) Y = $7,850 + $0.132X

Suppose that jim plans to borrow money for an education at texas a& m university. jim will need to borrow $25,000 at the end of each year for the next five years (total=$125,000). jim wishes his parents could pay for his education but they can’t. at least, he qualifies for government loans with a reduced interest rate while he is in school. he has a special arrangement with aggiebank to lend him the money at a subsidized rate of 1% over five years without having to make a payment until the end of the fifth year. however, at the end of the fifth year, jim agrees to pay off the loan by borrowing from longhorn bank. longhorn bank will lend him the money he needs at an annual interest rate of 6%. jim agrees to pay back the longhorn bank with 20 annual payments and the payments will be uniform (equal annual payments including principal and interest). (i) calculate how much money jim has to borrow at the end of 5 years to pay off the loan with aggiebank. a. $121,336 b. $127,525 c. $125,000 d. $102,020 e. none of the above