The management of Ferry Corporation would like for you to analyze their repair costs,which are listed below: Management believes that repair cost is a mixed cost that depends on the number of machine-hours.Using the least-squares regression method,the estimates of the variable and fixed components of repair cost would be closest to:
A)$1.64 per machine-hour plus $29,566 per month
B)$0.92 per machine-hour plus $31,132 per month
C)$1.37 per machine-hour plus $30,157 per month
D)$15.39 per machine-hour plus $33,096 per month

Question

The management of Ferry Corporation would like for you to analyze their repair costs,which are listed below:  Management believes that repair cost is a mixed cost that depends on the number of machine-hours.Using the least-squares regression method,the estimates of the variable and fixed components of repair cost would be closest to:
A)$1.64 per machine-hour plus $29,566 per month 
B)$0.92 per machine-hour plus $31,132 per month 
C)$1.37 per machine-hour plus $30,157 per month 
D)$15.39 per machine-hour plus $33,096 per month

Quizplus · Accepted Answer

Using Microsoft Excel,the solution is:
 11eaa48f_7c00_62e5_9e4a_eb3ad9657c28_TB2485_00

The Management of Ferry Corporation Would Like for You to Analyze