Trey, Inc. is studying marketing cost and sales volume, and has generated the following information by use of a scatter diagram and a least-squares regression analysis:

Scatter DiagramRegression Analysis

Variable cost per unit sold$5.90$6.50

Total monthly fixed cost$46,500$42,500

Trey is now preparing an estimate for monthly sales of 20,000 units. On the basis of the data presented, compute the most accurate sales forecast possible.

Multiple Choice

• $160,500.
• $164,500.
• $172,500.
• $176,500.