Checak Incorporated Wanted to Determine the Relationship Between Its Monthly

question 194

Multiple Choice

Checak 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 closest to the total cost if the firm uses 6,000 machine hours?

• A)$7,257.49
• B)$6,538.90
• C)$14,729,732.60
• D)$1,365.59

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