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Compute the most accurate sales forecast possible

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Question - Tempe, Inc., is studying marketing cost and sales volume, and has generated the following information by use of a scatter diagram and a least-squares regression analysis:

Scatter Diagram

Regression Analysis

Variable cost per unit sold

$6.50

$6.80

Total monthly fixed cost

$45,000

$42,500

Tempe is now preparing an estimate for monthly sales of 18,000 units. On the basis of the data presented, compute the most accurate sales forecast possible.

$159,500.

$162,000.

$164,900.

$167,400.

An amount other than those listed above.

Reference no: EM132063742

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