Exhibit 81
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 29

Multiple Choice

Exhibit 8.1
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) $$\begin{array}{l}\quad\quad\quad\quad\quad\quad\quad\quad\text { Rates of Return }\\\begin{array} { c c c } \text { Year } & \text { RA Computer } & \text { Market Index } \\\hline 1 & 13 & 17 \\2 & 9 & 15 \\3 & - 11 & 6 \\4 & 10 & 8 \\5 & 11 & 10 \\6 & 6 & 12\end{array}\end{array}$$
-Refer to Exhibit 8.1. Compute the intercept of the characteristic line for RA Computer.

• A)-9.41
• B)11.63
• C)4.92
• D)-4.92
• E)-7.98

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Definitions:

Materials Budget

An estimate of the cost of raw materials required for production over a specific period.

Budgeted Production

An estimate of the number of units that must be produced during a specific period to meet expected sales and inventory levels.

Material Costs

The costs associated with the raw materials and components used in creating a product.

Production Budget

An estimate of the total cost of production that includes direct labor, materials, and overhead expenses for a specific period.