Brewsky's Is a Chain of Micro-Breweries Based on the Data Derived from the Regression Analysis,what Are

question 90

Multiple Choice

Brewsky's is a chain of micro-breweries.Managers are interested in the costs of the stores and believe that the costs can be explained in large part by the number of customers patron­izing the stores.Monthly data regarding customer visits and costs for the preceding year for one of the stores have been entered into the regression analysis and the analysis is as follows:
$$\begin{array} { | l | r | } \hline \text { Average monthly customer-visits } & 1,462 \\\hline \text { Average monthly total costs } & \$ 4,629 \\\hline \text { Regression Results } & \\\hline \text { Intercept } & \$ 1,496 \\\hline \text { b coefficient } & \$ 2.08 \\\hline R^ { 2} & 0.86814 \\\hline\end{array}$$
Based on the data derived from the regression analysis,what are the estimated costs for 1,600 customer-visits in a month? (CMA adapted)

• A) $6,125.
• B) $4,629.
• C) $3,328.
• D) $4,824.

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Definitions:

Net Income

The total revenue minus expenses, taxes, and costs, representing the profit of a company over a specific time period.

Direct Method

The direct method in accounting refers to a way of reporting cash flows from operating activities by directly listing major classes of gross cash receipts and payments.

Indirect Method

A technique used in cash flow statement preparation where net income is adjusted for non-cash transactions and changes in working capital to arrive at operating cash flow.

Financing Activity

Transactions and events where cash is raised or repaid to investors, such as issuing stock, borrowing money, or paying dividends.