1. Your client's company wants to determine the relationship between its monthly operating costs and a potential cost driver. The output of regression analysis showed the following information:

Intercept Coefficient = 89,500

X Variable 1 Coefficient = 62.50

R- square = 0.9855

What is the company's monthly cost equation?

A. y = $62.50x + $89,500

B. y = $89,500x + $62.98

C. y = $89,500x + $98.55

D. y = $98.55x + $89,500

2. The managerial accountant at the Bookcase Factory prefers regression analysis to the high?low method because it is a more accurate method. The managerial accountant uses regression output and analyzes the following data to predict future costs:

y =$250x + $625

where,

y = total monthly utility cost

x = number of guests

What is the intercept coefficient, or the vertical intercept of the fixed cost line, in the equation listed above?

A. $625

B. y

C. $250x+ $625

D. $250x

3. Hyper Color Company manufactures widgets. The following data is related to sales and production of the widgets for last year.

Selling price per unit	$160
Variable manufacturing costs per unit	$62
Variable selling and administrative expenses per unit	$5
Fixed manufacturing overhead (in total)	$33,000
Fixed selling and administrative expenses (in total)	$8,000
Units produced during the year	1,800
Units sold during year	900

Using variable costing, what is the contribution margin for last year?

A. $144,000

B. $55,800

C. $204,300

D. $83,700