Tecscin Company manufactures motorcycles.The company's management accountant wants to calculate the fixed and variable costs associated with utility cost incurred by the factory.Data for the past five months were collected as follows:

Using a regression program, the value of the intercept (rounded to the nearest whole number) is calculated as:

Question

Tecscin Company manufactures motorcycles.The company's management accountant wants to calculate the fixed and variable costs associated with utility cost incurred by the factory.Data for the past five months were collected as follows: ​
​
 Using a regression program, the value of the intercept (rounded to the nearest whole number) is calculated as:

Quizplus · Accepted Answer

The intercept represents the fixed cost component of the utility cost. Based on the data provided and using a regression program, the intercept value is calculated as $2,113 rounded to the nearest whole number. Therefore, the correct answer is choice C.

Tecscin Company Manufactures Motorcycles