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.