Refer to Toronto Company. What is the fixed cost of electricity when using the results of regression?
A) $2,180
B) $2,200
C) $2,225
D) $2,250

Question

Quizplus · Accepted Answer

Based on the results of regression, the fixed cost of electricity for Toronto Company is $2,225. This can be determined by identifying the intercept value on the regression line, which represents the fixed cost. In this case, the intercept value is $2,225, as indicated by the regression analysis. Therefore, the correct choice is C.