Figure 3-12

Multiple Choice

Figure 3-12. The method of least squares was used to develop a cost equation to predict the cost of monthly equipment maintenance.The following computer output was received:
The driver used was the number of machine hours.
Refer to Figure 3-12.Using the cost formula for the equipment maintenance cost,what is the predicted cost of equipment maintenance for April assuming that 5,000 machine hours will be incurred in April?

A) $32,000
B) $125,000
C) $157,000
D) none of these are correct