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 (O). The results were: [Y=$95,000 + $9xDLH: R-square 0.851: TY= $120,000 - $5xMhr: R-square = 0.151: [Y=190,000+20; R-square=0.45). How much of the Variations on the overhead costs is explained by the machine hours (Mhr)? Select one: ca. 85% b. 55% . 45% no d. 1594 e None of the answers given Section 12 Not yet answered 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? Marked out of 200 Flag question Select one: O a. No, because sales will drop by 3,000 units. b. Yes, the company will be better off by $5,000. c. No, because the company will be worse off by $22.000 d. It is impossible to judge because additional information is needed. e. No, because the company will be worse off by 55.000