Recent Maintenance Costs of Pavelko Corporation Are Listed Below

Multiple Choice

Recent maintenance costs of Pavelko Corporation are listed below: Management believes that maintenance cost is a mixed cost that depends on machine-hours.
-Using the least-squares regression method, the estimate of the fixed component of maintenance cost per month is closest to:

A) $7,826
B) $6,036
C) $7,950
D) $6,199