Victoria Is a Budget Analyst at Young Industries

Victoria is a budget analyst at Young Industries.She used the least squares regression method to separate the plant's monthly utilities cost into its fixed and variable components.The results were as follows: Y = 3,250 + .054 X
X = the number of units produced
R² = .892
How should Victoria interpret the R² of .892?

A) The equation is a better predictor of fixed costs than of variable costs 89.2% of the time.
B) The equation will accurately predict utility costs 89.2% of the time.
C) Fixed costs make up 89.2% of the total semi-variable cost in any given month.
D) The number of units produced explains 89.2% of the variation in the plant utilities cost.