Figure 3-9. The following cost formula was developed using monthly data for a retail clothing store.
Total cost = $75,620 + ($242 ´ number of customers)
Refer to Figure 3-9.The term $242
A)is the independent variable.
B)is the dependant variable.
C)is the intercept.
D)is the variable rate.

Question

Quizplus · Accepted Answer

The term $242 represents the variable rate since it is multiplied by the number of customers, which indicates that for each customer, the cost increases by $242. The intercept is the constant term of $75,620. The independent variable is the number of customers, and the dependent variable is the total cost.