Star, Inc. used Excel to run a least-squares regression analysis, which resulted in the following output:

Regression Statistics
Multiple R	0.9755
R Square	0.9517
Observations	30

	Coefficients	Standard Error	T Stat	P-Value
Intercept	175,003	61,603	2.84	0.021
Production (X)	11.57	0.9213	12.55	0.000

How much of the variation in cost is not explained by production?

Multiple Choice

• 7.87%

• 4.83%

• It is impossible to determine.

• 2.45%

Gardenia Corp. has a selling price of $18, fixed costs of $24,000, and contribution margin of $72,000. If Gardenia sells 12,000 units, how much are variable costs per unit?

Multiple Choice

• $8.00

• $12

• $2.00

• $6.00