Louis Tang, a cost accountant at Prime Plastics, Inc.(PPI), is analyzing the manufacturing costs of a moulded plastic telephone handset produced by PPI.Louis's independent variable is production lot size (in 1,000's of units), and his dependent variable is the total cost of the lot (in $100's).Regression analysis of the data yielded the following tables: For a lot size of 10,000 handsets, Louis' model predicts total cost will be ___.
A)$4,031.80
B)$757.60
C)$3,960.20
D)$354.01
E)$1873.077

Question

Louis Tang, a cost accountant at Prime Plastics, Inc.(PPI), is analyzing the manufacturing costs of a moulded plastic telephone handset produced by PPI.Louis's independent variable is production lot size (in 1,000's of units), and his dependent variable is the total cost of the lot (in $100's).Regression analysis of the data yielded the following tables:   For a lot size of 10,000 handsets, Louis' model predicts total cost will be ___.
A)$4,031.80 
B)$757.60 
C)$3,960.20 
D)$354.01 
E)$1873.077

Quizplus · Accepted Answer

The Answer of Louis Tang, a cost accountant at Prime Plastics, Inc.(PPI), is analyzing the manufacturing costs of a moulded plastic telephone handset produced by PPI.Louis's independent variable is production lot size (in 1,000's of units), and his dependent variable is the total cost of the lot (in $100's).Regression analysis of the data yielded the following tables:   For a lot size of 10,000 handsets, Louis' model predicts total cost will be ___.
A)$4,031.80 
B)$757.60 
C)$3,960.20 
D)$354.01 
E)$1873.077

Louis Tang, a Cost Accountant at Prime Plastics, Inc