Wallace Incorporated wanted to determine the relationship between its monthly operating costs and a potential cost driver, machine hours. The output of a regression analysis showed the following information (note: only a portion of the regression analysis results is presented here): What is the fixed cost (round to nearest cent)?
A)$67.59
B)$0.99
C)$2,945.95
D)$0.72

Question

Wallace Incorporated wanted to determine the relationship between its monthly operating costs and a potential cost driver, machine hours. The output of a regression analysis showed the following information (note: only a portion of the regression analysis results is presented here):  What is the fixed cost (round to nearest cent)?
A)$67.59 
B)$0.99 
C)$2,945.95 
D)$0.72

Quizplus · Accepted Answer

The fixed cost is represented by the intercept coefficient in the regression analysis. In this case, it is $2,945.95.

Wallace Incorporated Wanted to Determine the Relationship Between Its Monthly