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 moulded 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