The Plant Manager Requested Information to Assist in Estimating Maintenance

question 116

Essay

The plant manager requested information to assist in estimating maintenance costs.The following computer printout was generated using the least-squares method:
$\begin{array}{|l|r|}\hline \text { Intercept } & 2,550 \\\hline \text { Slope } & 1.85 \\\hline \text { Correlation coefficient } & 0.84 \\\hline \text { Activity variable } & \text { Units of production volume } \\\hline\end{array}$
a.Using the information from the computer printout,develop a cost function that can be used to estimate maintenance costs at different volume levels.
b.Estimate maintenance costs if expected production for next month is 10,000 units.

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Definitions:

Genome

The complete set of DNA, including all of its genes, in an organism or a cell.

Fetal Period

A stage of human development that begins at the end of the tenth week of gestation and continues until birth, characterized by rapid growth and maturation of bodily structures.

Recessive Gene

A gene that can be masked by a dominant gene and is expressed in the phenotype only when both alleles are recessive.

Phenotype

A group of traits in a person that are visible and come about through the way their genetic makeup responds to environmental factors.