hane Company is interested in establishing the relationship between electricity costs and machine hours. Data have been collected and a regression analysis prepared using Excel. The monthly data and the regression output follow:

Month	Machine Hours	Electricity Costs
January	2,500	$	19,200
February	2,900	$	22,600
March	1,900	$	14,300
April	3,100	$	24,600
May	3,800	$	29,050
June	3,300	$	23,600
July	4,100	$	25,550
August	3,500	$	23,550
September	2,000	$	17,100
October	3,700	$	27,600
November	4,700	$	32,600
December	4,200	$	28,550

Summary Output
Regression Statistics
Multiple R	0.956
R Square	0.914
Adjusted R2	0.905
Standard Error	1,615.39
Observations	12.00

	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%
Intercept	4,974.43	1,907.43	2.61	0.03	724.41	9,224.45
Machine Hours	5.76	0.56	10.30	0.00	4.51	7.00

If the controller uses regression analysis to estimate costs, the estimate of the variable portion of electricity costs is:

Multiple Choice

• Electricity Costs = $0.91 Machine-hours.

• Electricity Costs = $0.56 Machine-hours.

• Electricity Costs = $5.76 Machine-hours.

• Electricity Costs = $10.30 Machine-hours.

The following information pertains to Tiller Co.:

Sales	$	740,000
Variable Costs		148,000
Fixed Costs		35,200

What is Tiller's break-even point in sales dollars? (CPA adapted) (Round intermediate calculation to 2 decimal places)

Multiple Choice

• $183,200.

• $148,000.

• $35,200.

• $44,000.