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The controller of Chittenango Chain Company believes that the identification of the variable and fixed components of the

firm's costs will enable the firm to make better planning and control decisions. Among the costs the controller is

concerned about is the behavior of indirect$-$materials cost. The controller believes there is a correlation between machine

hours and the amount of indirect materials used.

A member of the controller's staff has suggested that least$-$squares regression be used to determine the cost behavior of

indirect materials. The regression equation shown below was developed from $40$ pairs of observations.

$S=$$$200+$$$4H$

where $S=$ Total monthly cost $of$ indirect materials

$H=$ Machine hours per month

Required:

Choose the correct statement$($s$)$ that explain the meaning of $"200"$ and $"4"$ in the regression equation $S=$$$200+$$$4H.$

Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct

answer and double click the box with the question mark to empty the box for a wrong answer. Check my work is not available.

The regression equation's intercept on the vertical axis is $$200.$

The slope of the regression line is $$4$ per machine hour.

The regression equation's intercept on the vertical axis is $$4$ per machine hour.

The slope of the regression ine is $$200$

None of these choices are correct