Meg Co. has developed a regression equation to analyze the behavior of its maintenance costs (Q) as a function of machine hours (Z). The following equation was developed by using 30 monthly observations with a related coefficient of determination of . 90:

Q = $6,000 + $5.25Z

If 1,000 machine hours are worked in one month, the related point estimate of variable maintenance costs would be

Question 7 options:

A)

$ 4,725.

B)

$ 5,250.

C)

$11,250.

D)

$10,125.