Barium, Inc., ran a regression on the last 12 months data of selling expenses. T

Question

Barium, Inc., ran a regression on the last 12 months data of selling expenses. The selling expenses vary according to the number of orders placed by customers. Following data is available after regression analysis of selling expenses: Intercept $2,842 (rounded to the nearest dollar) X variable 1 5.68 (rounded to the nearest cent) Barium wants to estimate the selling cost for the coming year and expects 4,800 customer orders. Determine the estimated total selling costs for the coming year. (Round your answer to the nearest whole number.) a. $70,802 b. $61,368 c. $34,104 d. $45,946

Explanation / Answer

b. $61,368

Selling cost for the year = (12 months × $2,842) + ($5.68 × 4,800 orders) = $34,104 + $27,264 = $61,368

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