Wallace Incorporated Wanted to Determine the Relationship Between Its Monthly

question 38

Multiple Choice

Wallace Incorporated wanted to determine the relationship between its monthly operating costs and a potential cost driver, machine hours. The output of a regression analysis showed the following information (note: only a portion of the regression analysis results is presented here) : What is the fixed cost (round to nearest cent) ?

• A)$67.59
• B)$0.99
• C)$2,945.95
• D)$0.72

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Definitions:

Simplify

The process of altering an expression into its most basic or concise form, without changing its value.

Combine

To bring two or more elements together to form a single entity or result.

Simplify

Simplifying a mathematical expression or equation involves executing operations and merging similar terms to present it in its most basic form.

Combine

To merge or bring together two or more elements to form a single entity or total.