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 "total cost"
A)is the independent variable.
B)is the dependant variable.
C)is the intercept.
D)is the variable rate.

Question

Quizplus · Accepted Answer

Total cost is the dependent variable as it is being predicted based on the number of customers. The number of customers is the independent variable. The intercept is the fixed cost or the cost that does not vary with the number of customers, which in this case is $75,620. The variable rate is the coefficient of the independent variable, which in this case is $242.