Answer the Following Questions Using the Information Below:
the Nowra

question 176

Multiple Choice

Answer the following questions using the information below:
The Nowra Company has assembled the following data pertaining to certain costs that cannot be easily identified as either fixed or variable.Nowra Company has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation.
$$\begin{array} { l r r } \text { Month } & \text { Cost } & \text { Hours } \\\text { January } & \$ 40000 & 3500 \\\text { February } & 24400 & 2000 \\\text { March } & 31280 & 2450 \\\text { April } & 36400 & 3000 \\\text { May } & 44160 & 3900 \\\text { June } & 42400 & 3740\end{array}$$
-Craig's Cola is to manufacture 1000 cases of cola next week.The accountant provided the following analysis of total manufacturing costs:
$$\begin{array}{l}\begin{array} { l c c c } \text { Variable } & \text { Coefficient } & \text { Standard Error } & \text { t-Value } \\\text { Constant } & 100 & 71.94 & 1.39 \\\text { Independent variable } & 200 & 91.74 & 2.18\end{array}\\r ^ { 2 } = 0.82\end{array}$$
What is the estimated cost of producing the 1000 cases of cola?

• A)$200 100
• B)$9000
• C)$142 071
• D)$100 200

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