XYZ Company's accountant is estimating next period's total overhead costs (Y). She performed three regression analyses, the first is based on direct labor hours (DLH), the second is based on machine hours (Mhr), and the third is based on quantity produced (Q). The results were: [Y=$150,000 + $10xDLH; R-square = 0.111; [Y= $190,000 + $5xMhr, R-square = 0.52]; [Y=200,000+20; R-square=0.95). Based on this information, which cost driver do you recommend? Select one: a. Quantity produced (0) b. Machine hours (Mhr) c. Direct labor hours (DLH) d. All cost drivers are the same e. None of them XYZ Company's single product has a selling price of $25 per unit. Last year the company reported profit of $125,000 and variable expenses totaling $600,000. The product has a 40% contribution margin ratio. Because of competition, XYZ Company will be forced in the current year to reduce its selling price by $2 per unit. How many units must be sold in the current year to earn the same profit as was earned last year? Select one: a. 60,000 b. 40,000 c. 50,000 XYZ company is studying the profitability of a change in operation and has gathered the following information. Current Operation: Fixed Costs: $38,000, Selling Price: $15, Variable Cost: $10, and Sales (Units): 9,000. Anticipated Operation: Fixed Costs: $48,000, Selling Price: $22. Variable Cost: $12, and Sales (Units): 6,000. Should XYZ company make the change? Select one: a. Yes, the company will be better off by $5,000. b. It is impossible to judge because additional information is needed. c. No, because sales will drop by 3,000 units. d. No, because the company will be worse off by $22,000. e. No, because the company will be worse off by $5,000. High-low and regression cost estimation methods are alike in that they both: Select one: a. Have an intercept term but not a slope term. b. Provide the same accuracy and reliability c. Have a slope term but not an intercept term. d. Have an intercept term and a slope term