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Estimate of budgeted production costs in the coming month

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Question - Circuit Boards R Us (CBRU) uses regression analysis to estimate the monthly cost of producing circuit boards. A regression analysis using number of circuit boards produced as the cost driver has the following output: Y = $ 70,000 + $ 2 * number of circuit boards. CBRU is budgeting to produce 40,000 circuit boards in the coming month. What is a reasonable estimate of budgeted production costs in the coming month?

A. $ 40,000

B. $ 70,000

C. $ 150,000

D. $ 80,000

Reference no: EM131599001

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