The management of Hamano Corporation would like for you to analyze their repair costs, which are listed below:

Management believes that repair cost is a mixed cost that depends on the number of machine$-$hours. Using the least$-$squares regression method, the estimates of the variable and fixed components of repair

cost would be closest to:

Multiple Choice

$$1\mathrm{.}25$ per machine$-$hour plus $$30,387$ per month

$$0\mathrm{.}80$ per machine$-$hour plus $$31,953$ per month

$$0\mathrm{.}98$ per machine$-$hour plus $$30,978$ per month

$15\mathrm{.}00$ per machine$-$hour plus $$33,917$ per month