Gelrud Corporation's Recent Utility Costs Are Listed Below: Management Believes

question 8

Multiple Choice

Gelrud Corporation's recent utility costs are listed below: Management believes that utility cost is a mixed cost that depends on machine-hours.
-Using the least-squares regression method,the estimate of the variable component of utility cost per machine-hour is closest to:

• A)$8.15
• B)$5.78
• C)$5.57
• D)$5.85

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Definitions:

Price

The amount of money required to purchase a good or service, often determined by factors like supply, demand, and production cost.

Utility Function

A mathematical representation that associates levels of utility or satisfaction a consumer derives from consuming various bundles of goods.

Nonlabor Income

Income received that does not result from employment or work performed, such as dividends, interest on investments, or pensions.

Leisure

Time spent away from work and essential activities, during which an individual can engage in activities of personal interest or enjoyment.