Ponszko Nursery Used High-Low Data from June and July to Determine

Ponszko Nursery used high-low data from June and July to determine its variable cost of $12 per unit. Additional information follows: $\begin{array}{llr} \text { Month}&\text { Units produced }&\text { Total costs }\\\hline\text { June }& 2,000 & \$ 32,000 \\\text { July } & 1,000 & 20,000\end{array}$ If Ponszko's produces 2,300 units in August, how much is its total cost expected to be?

A) $8,000
B) $39,600
C) $27,600
D) $35,600

Correct Answer:

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