The Management of Hamano Corporation Would Like for You to Analyze

question 1

Multiple Choice

The management of Hamano Corporation would like for you to analyze their repair costs,which are listed below:
Management believes that repair cost is a mixed cost that depends on the number of machine-hours.Using the least-squares regression method,the estimates of the variable and fixed components of repair cost would be closest to:

• A) $22.11 per machine-hour plus $98,497 per month
• B) $7.37 per machine-hour plus $65,670 per month
• C) $8.19 per machine-hour plus $62,015 per month
• D) $7.55 per machine-hour plus $64,859 per month

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Definitions:

Macrophage

A form of white blood cell which performs the action of engulfing and digesting cellular remnants, alien substances, bacteria, and tumor cells via a process termed phagocytosis.

B Lymphocyte

A type of white blood cell important for the immune system, responsible for producing antibodies.

Carcinogen

A substance capable of causing cancer in living tissue.

Cold Virus

A virus that causes an infection in the upper respiratory tract, leading to symptoms commonly known as the common cold.