Regis Corporation Wants to Know How Closely Its Current Cost

Multiple Choice

Regis Corporation wants to know how closely its current cost driver is correlated with its monthly operating costs. The managerial accountant runs a regression analysis using a statistical software program and produces the following data: Intercept Coefficient = 12,200,567
X Variable 1 Coefficient = 95.65
R-square = 0.8574
What is the Regis Corporation's monthly cost equation?

A) y = $95.65x + $8,574
B) y = $95.65x + $12,200,567
C) y = $12,200,567x + $8,574
D) y = $0.8574x + $12,200,567