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Tillman Company uses the high-low method to estimate its cost function. The information for the current year is provided below:
Machine-hours Costs
Highest observation of cost driver 2,500 $300,000
Lowest observation of cost driver 1,500 $ 220,000
What is the estimated cost function for the above data?
| | A. | y = 300,000 +120X |
| | B. | y = 220,000 +147X |
| | C. | y = 100,000 +80X |
| | D. | y = 130X |
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