The Rumler Company Used Regression Analysis to Predict the Annual

Multiple Choice

The Rumler Company used regression analysis to predict the annual cost of utilities.The results were as follows:
$\begin{array}{ll}&\text { Utilities Cost }\\&\text { Explained by Direct Labor Hours }\\\text { Constant } & 4,500 \\\text { Standard error of } Y \text { estimate } & 595 \\\text { R-Squared } & 0.87 \\\text { No. of observations } & 30 \\\text { Degrees of freedom } & 28 \\\text { X Coefficient } & 5.04 \\\text { Standard error fofficient } & 0.92\end{array}$
The total fixed cost is ________.

A) $5.04 times number of direct labor hours
B) $595
C) $4,500
D) none of the above