1. Total costs may be computed as follows:

a.(Fixed costs per unit Unit volume) + Variable costs per unit

b.Fixed costs per unit + (Variable costs per unit Unit volume)

c.Fixed costs + (Variable costs per unit Unit volume)

2. A coefficient of determination of 0.91 means

a.that the independent variable explains 91 percent of the cost.

b.the model is significant 91 percent of the time.

c.the two variables move together in the same direction and have a strong relationship.

d.the parameter is not significant.

3. What does a correlation coefficient near -1 mean?

a.Two variables are moving in the opposite direction.

b.Two variables are moving in the same direction.

c.Two variables are unrelated.

d.One variable is not a good predictor of the other.

d.(Fixed costs per unit Unit volume) + Variable costs

4. Green Company is planning to introduce a new product with a 75 percent incremental unit-time learning curve for production in batches of 1,500 units. The variable labor costs are $55 per unit for the first 1,500-unit batch. Each batch requires 200 hours. There are $15,000 in fixed costs not subject to learning. What is the cumulative total time (labor hours) to produce 3,000 units?

a.250 hours

b.300 hours

c.255 hours

d.350 hours