Wallace Industries Wanted to Determine the Relationship Between Its Monthly

question 174

Multiple Choice

Wallace Industries 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 4,200 machine hours?

• A)$5,964.03
• B)$3,018.08
• C)$2,945.95
• D)$12,372,975.38

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Definitions:

Common Resources

Natural or man-made resources that are not owned by anyone, cannot exclude others from using, and are susceptible to overuse and depletion.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they can be used by everyone without diminishing availability to others.

Not Excludable

A characteristic of a good or service where it is difficult or impossible to prevent individuals from enjoying its benefits, even if they do not pay for it.

Not Rival

A characteristic of a good where its consumption by one individual does not reduce availability or quality for others.