The Following Excel Scatterplot with the Fitted Quadratic Regression Equation

question 37

Multiple Choice

The following Excel scatterplot with the fitted quadratic regression equation illustrates the observed relationship between productivity and the number of hired workers. Assuming that the number of hired workers must be integer,how many workers should be hired to achieve the highest productivity?

• A) 26
• B) 28
• C) 30
• D) 32

---

Definitions:

Gross Margin

The difference between sales revenue and cost of goods sold, representing the fundamental profit derived from trading activities, before deduction of operating expenses.

Operations

Activities involved in the day-to-day running of a business for the purpose of producing value for the stakeholders.

Variable Costing

An accounting method that includes only variable production costs—direct materials, direct labor, and variable manufacturing overhead—in the cost of goods sold.

Absorption Costing

A calculation approach that encompasses all expenses of production, such as materials, labor, and all overheads, both variable and fixed, in determining a product's price.