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Victoria Is a Budget Analyst at Young Industries

Question 36

Multiple Choice

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

Based on these results,the December budget for plant utilities cost if Young Industries plans to produce 200,000 units in that month would be:


A) $10,800
B) $14,050
C) $ 3,250
D) $10,920

Correct Answer:

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