The Management of Ferry Corporation Would Like for You to Analyze

question 14

Multiple Choice

The management of Ferry Corporation would like for you to analyze their repair costs, which are listed below: Management believes that repair cost is a mixed cost that depends on the number of machine-hours. Using the least-squares regression method, the estimates of the variable and fixed components of repair cost would be closest to:

• A)$1.64 per machine-hour plus $29,566 per month
• B)$0.92 per machine-hour plus $31,132 per month
• C)$1.37 per machine-hour plus $30,157 per month
• D)$15.39 per machine-hour plus $33,096 per month