The Management of Ferry Corporation Would Like for You to Analyze

Multiple Choice

The management of Ferry Corporation would like for you to analyze their repair costs,which are listed below: Management believes that repair cost is a mixed cost that depends on the number of machine-hours.Using the least-squares regression method,the estimates of the variable and fixed components of repair cost would be closest to:

A) $1.64 per machine-hour plus $29,566 per month
B) $0.92 per machine-hour plus $31,132 per month
C) $1.37 per machine-hour plus $30,157 per month
D) $15.39 per machine-hour plus $33,096 per month