The following data applies to questions 8 and 9:
Jackson Co. had the following data for units produced and maintenance costs in each of the four quarters of their prior fiscal year:
QUARTER 1: 10 units and $61
QUARTER 2: 13 units and $73
QUARTER 3: 9 units and $60
QUARTER 4: 12 units and $70
8. Using the Linear Regression Method, the slope of the budget line would be
a. $3.00
b. $3.25
c. $3.50
d. $3.75
9. Using the Linear Regression Method and your answer from #8 above, calculate the fixed costs (Y-
intercept) for the budget line
a. $23.50
b. $28.75
c. $27.50
d. $25.75
10. The cost budget formula for a particular mixed cost is: $450 + ($1.85 x units). The total budgeted
cost for a volume of 2,500 units would be:
a. $4,875
b. $5,625
c. $4,625
d. $5,075