Dollah Corporation Is Studying Its Marketing Cost and Sales Volume

Multiple Choice

Dollah Corporation is studying its marketing cost and sales volume, and has generated the following information by use of a scatter diagram and a least-squares regression analysis: $\begin{array} { | l | r | r | } \hline & \text { Scatter Diagram } & \text { Regression Analysis } \\\hline \text { Vaiable cost per unit sold } & \$ 7.50 & \$ 7.80 \\\text { Total monthly fixed cost } & \$ 55,000 & \$ 52,500 \\\hline\end{array}$ Dollah is now preparing an estimate for monthly sales of 20,000 units. On the basis of the data presented, compute the most accurate sales forecast possible.

A) $156,000.
B) $202,500.
C) $205,000.
D) $208,500.
E) $211,000.