The Following Information Is Available for Maintenance Costs -Refer to the Figure

question 31

Multiple Choice

The following information is available for maintenance costs:
$$\begin{array} { l c c } \text { Month } & \text { Production Volume } & \text { Maintenance Costs } \\\hline\text { January } & 75 & \$ 250 \\\text { February } & 115 & 310 \\\text { March } & 190 & 400 \\\text { April } & 60 & 240 \\\text { May } & 135 & 355\end{array}$$
-Refer to the figure.Using the method of least squares,what would the fixed portion of maintenance costs be (rounded to dollars) ?

• A)$66
• B)$160
• C)$166
• D)$575

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Definitions:

Average Product

is the output per unit of input, such as the quantity of goods produced per labor hour, and is used to measure productivity.

Marginal Cost

The expenditure resulting from the creation of an additional unit of a product or service.

Short-run Total Cost

The total of all costs, both fixed and variable, that a firm incurs in producing goods or services in the short run.

Average Total Cost

The cost per unit of output, determined by dividing the overall production cost by the quantity produced.