Exhibit 14-4

question 107

Multiple Choice

Exhibit 14-4.Consider the following sample regression equation ,where y is the supply for Product A (in 1000s) and x is the price of Product A (in $) . Refer to Exhibit 14-4.The slope coefficient indicates that if

• A)the price of Product A increases by $1,then on average,supply decreases by 10.
• B)the price of Product A increases by $1,then on average,supply increases by 10.
• C)the price of Product A increases by $1,then on average,supply decreases by 10,000.
• D)the price of Product A increases by $1,then on average,supply increases by 10,000.

---

Definitions:

Budgeted Income Statement

A projected financial statement that estimates a company's expected revenues, expenses, and net income for a future period based on a budget.

Production Facility Capacity

The maximum amount of goods a manufacturing facility can produce over a specific period under normal working conditions.

Finished Goods Units

The quantity of completed products available for sale or distribution at the end of a production process.

Sales Budgeted

This refers to a financial plan that estimates the expected revenues from sales within a specific period.