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1. The management of Pavelko Corporation believes that the monthly maintenance cost is a mixed cost that depends on machine hours.Regression results for the most recent 12 months yielded the following results:

Intercept = $6,199

Slope = $2.96

RSQ = .99

If they expect to incur 600 machine hours next month, what should they expect the maintenance cost to be?

A. $1,776

B. $6,199

C. $7,975

D. $7,895