Louis Katz, a Cost Accountant at Papalote Plastics, Inc

Multiple Choice

Louis Katz, a cost accountant at Papalote Plastics, Inc. (PPI) , is analyzing the manufacturing costs of a molded plastic telephone handset produced by PPI. Louis's independent variable is production lot size (in 1,000's of units) , and his dependent variable is the total cost of the lot (in $100's) . Regression analysis of the data yielded the following tables: For a lot size of 10,000 handsets, Louis' model predicts total cost will be ___.

A) $4,031.80
B) $757.60
C) $3,960.20
D) $354.01
E) $1873.077