21. The method of least squares was used to develop a cost equation Y- a+b predict the total production cost. Monthly data for the past 12 months were u for the regression analysis. The following computer output was received: to sed Intercept Slope Explained variance Unexplained variance The independent variable was "number of units produced." $5,000 $ 10 2,304,000 256,000 Predict the production cost range at the 99.5% confidence level if 600 units are to be produced next month: A) $ 10,520 to $ 11,480 B) $ 10,600 to $ 11,400 C) S 10,840 to $ 11,160 D) $ 10,500 to $ 16,874 27. Carl Company produces a product which sells for $50. Variable manufacturing costs are $30 per unit. Fixed manufacturing costs are $5 per unit based on the current level of activity, and fixed selling and administrative costs are $4 per unit. A selling commission of 4% of the selling price is paid on each unit sold. The contribution margin ratio is: A) 8090 B) 36% C) 25% D) 18% E) None of the above is correct