NoDis Company produces smart watches. The company controller wants to calculate the fixed and variable costs associated with the maintenance cost incurred by the factory. Data for the past four months are as follows:
Maintenance Machine
cost
hours
June
$5,000
350
July
$3,000
320
August
$4,000
315
September
$3,300
220
Estimated coefficients from a regression of maintenance costs on machine hours are:
Intercept 1,550
X
Variable 8.5
1
Using the results of the regression, what is the estimated cost for maintenance next month assuming 250 machine hours are budgeted?
? $2,700
? $4,225
? $1,200
? $3,675
? None of the above