Booster, Inc

question 12

Multiple Choice

Booster, Inc. recently conducted a least-squares regression analysis to predict selling expenses. The company has constructed the following regression equation: Y = 329,000 + 7.80X. Which of the following statements is false if the primary cost driver is number of units sold?

• A) The company anticipates $329,000 of fixed selling expenses.
• B) "Y" represents total selling expenses.
• C) The company expects both variable and fixed selling expenses.
• D) For each unit sold, total selling expenses will increase by $7.80.
• E) "X" represents the number of hours worked during the period.

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Definitions:

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