The Following Data Show the List Price, X, in Thousands

question 215

Multiple Choice

The following data show the list price, x, in thousands of dollars, and the dealer invoice price, y, also in thousands of dollars, for a variety of sport utility vehicles. Find a linear equation that approximates the data, using the points (16.5,
16) 1) and (20.0, 18.3) . $$\begin{array} { c | c } \text { List Price } & \text { Dealer Invoice Price } \\\hline 16.5 & 16.1 \\17.6 & 17.0 \\20.7 & 18.2 \\23.1 & 19.3 \\20.0 & 18.3 \\24.6 & 21.0\end{array}$$

• A) \(y = 1.59 x - 9.11\)
• B) \(y = 0.629 x + 6.38\)
• C) \(y = 1.59 x - 10.2\)
• D) \(y = 0.629 x + 5.73\)

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Definitions:

Traceable Fixed Expenses

Fixed costs that can be directly tied to a specific segment, department, or product, and would disappear if the segment, department, or product were eliminated.

Fixed Costs

Expenses that do not vary with the level of production or sales within a certain range.

Traceable Fixed Expenses

Fixed costs that can be directly associated with a specific business segment or operation.

Segment Margin

The amount of profit or loss generated by a particular segment of a business, after accounting for the direct costs and traceable fixed costs associated with that segment.