Checak Incorporated Wanted to Determine the Relationship Between Its Monthly

question 254

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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Definitions:

Utility

In ethics and economics, the concept of creating the greatest happiness or benefit for the greatest number of people.

Pluralists

Advocates of a system in which power is distributed among various groups and organizations, ensuring no single entity dominates.

Relativists

Individuals who hold that moral principles are not absolute but instead vary with social or individual circumstances.

Hedonists

Individuals who believe that the pursuit of pleasure is the most important goal of human life.