Johnson Company Has Provided the Following Data for the First

question 13

Multiple Choice

Johnson Company has provided the following data for the first five months of the year:
$\begin{array} {|l | r | r | } \hline & \text { Machine Hours } & \text { Lubrication Cost } \\\hline \text { January } & 120 & \$ 750 \\\hline \text { February } & 160 & 800 \\\hline \text { March } & 200 & 870 \\\hline \text { April } & 150 & 790 \\\hline \text { May } & 170 & 840 \\\hline\end{array}$


-Using the least squares regression method,the estimated variable lubrication cost per machine hour is closest to which of the following?

• A) $0.67.
• B) $1.56.
• C) $1.40.
• D) $1.50.

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Definitions:

Insourcing

The practice of conducting business processes or services internally rather than outsourcing them to third-party firms.

Unique Process

A specialized and distinctive method or procedure employed in the production of goods or delivery of services.

Outsourcing

The practice of hiring third parties to perform services or create goods that traditionally were performed in-house, often for efficiency and cost savings.

Core Competencies

Fundamental strengths or unique advantages that a company or individual possesses, central to its success and competitiveness.