Toronto Company Makes Cell Phones $\begin{array}{ll}\text { Intercept } & 2,225 \\\text { X Variable 1 } & 9.75\end{array}$

question 68

Multiple Choice

Toronto Company makes cell phones. The company controller wanted to calculate the fixed and variable costs associated with electricity use in the factory. Data for the past four months were collected.Coefficients shown by a regression program are:
$\begin{array}{lrr}& \text { Electricity } & \text { Machine } \\\text { Month } & \text { cost } & \text { hours }\\\text { May } & \$ 7,560 & 570 \\\text { June } & 8,220 & 625 \\\text { July } & 7,480 & 546 \\\text { August } & 7,186 & 518\end{array}$ $\begin{array}{ll}\text { Intercept } & 2,225 \\\text { X Variable 1 } & 9.75\end{array}$
-Refer to the Figure.What is the cost formula for electricity cost when using the results of regression?

• A)$9.75 × machine hours
• B)$2,225 × machine hours
• C)$2,225 + ($9.75 × machine hours)
• D)$9.75+($2,225 × machine hours)

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Definitions:

Polygons

Closed, two-dimensional shapes composed of straight lines, with a finite number of sides.

Profit Margin

A financial ratio representing the percentage of revenue that remains as profit after all expenses have been deducted.

ROA

Return on Assets; a financial ratio indicating the profitability of a company relative to its total assets.

Total Assets

The combined value of all owned resources that have economic value and can provide future benefits to the business.