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Management has prepared a graph showing the total costs of operating branch warehouses throughout the country. The cost line crosses the vertical axis at $200,000. The total cost of operating one branch is $350,000. The total cost of operating ten branches is $1,700,000. For purposes of preparing a flexible budget based on the number of branch warehouses in operation, what formula should be used to determine budgeted costs at various levels of activity? A. Y = $200,000 + $150,000X B. Y = $200,000 + $170,000X C. Y = $350,000 + $200,000X D. Y = $350,000 + $150,000X |