A consulting company would like to develop a method of predicting its total costs in a period. The following past costs have been recorded by the company in two periods:
Number of client hours= 420...................515
Total cost = $82,200........................$90,275
The best estimate of the cost formula for the company (where X is the number of client-hours) is:
a. Y = $46,500 + $85 X
b. Y = $42,000 + $95 X
c. Y = $46,500 - $85 X
d. Y = $51,500 - $95 X