Narrative 5-1

The following question(s) refer to the this equation analyzing the relationship of total cost to changes in machine hours. The following relationship was determined:

TC = $2,200 + $3X

e. Refer to Narrative 5-1. Which of the following terms best describes the equation?

a.	parabolic.
b.	curvilinear.
c.	linear.
d.	probabilistic.

f. Refer to Narrative 5-1. The TC in the above equation is an estimate of which of the following?

a.	total variable costs.
b.	total costs.
c.	total fixed costs.
d.	total machine hours.

g. Refer to Narrative 5-1. The above equation was probably found through the use of which of the following mathematical techniques?

a.	Linear programming
b.	Multiple regression analysis
c.	Simple Regression analysis
d.	Dynamic programming

h. Refer to Narrative 5-1. The $3 in the above equation is an estimate of which of the following?

a.	total fixed costs.
b.	variable costs per machine hour.
c.	total variable costs.
d.	fixed costs per machine hour.

i. Refer to Narrative 5-1. The dependent variable is which of the following?

a.	TC
b.	$2,200
c.	$3
d.	X

j. Refer to Narrative 5-1. The independent variable is which of the following?

a.	TC
b.	$2,200
c.	$3
d.	X