The Equation of the Trend Line for the Data Based

question 75

Multiple Choice

The equation of the trend line for the data based on sales (in $1000) of a local restaurant over the years 2005-2010 is Sales= -265575+132.571*year.The equation of the trend line when using 1 to 6 for 2005-2010 is ________

• A)-265575+132.571x
• B)132,571x
• C)97.284+132.571x
• D)-263571+98x
• E)2004+37.2x

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Definitions:

Variable Cost

Costs that change in proportion to the level of output or activity in a business.

Fixed Costs

Costs that do not vary in proportion to the level of goods or services produced by a business, such as rent, salaries, and insurance premiums.

Operating Leverage

Operating Leverage is a measure of how revenue growth translates into growth in operating income, determined by the proportion of fixed versus variable costs a company has.

Variable Cost

Operational expenses of a business that alter in accordance with the level of activity.