Carr Company Reports the Following Data for the First Six $\quad$

question 9

Multiple Choice

Carr Company reports the following data for the first six months of the year: $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ MachineElectrica
$\begin{array}{lrr} \text { Month } & \text { Hours } & \text { Cost } \\ \text { January. } &400&£40\\ \text {February } &300&£ 30\\ \text {March } &400& £ 50 \\ \text { April } &300 &£ 40 \\ \text { May} &200&£30\\\text {June } &200 &£ 20\end{array}$

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Using the least-squares regression method, the estimated monthly fixed component of the electrical cost is closest to

• A)£5.
• B)£20.
• C)£6.
• D)£10.

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Definitions:

Unit Sales

The number of individual units of a product sold in a specific time period.

Contribution Margin Ratio

The ratio of Contribution Margin (sales minus variable costs) to sales revenue.

Target Profit

The specific amount of net income that a company aims to achieve within a certain time frame.

Monthly

Pertaining to or occurring every month, often used in the context of reporting, billing, or accounting periods.