Exercise 5-52 (Algo) Interpretation of Regression Results: Multiple Choice (LO 5-3)Talon Services offers standardized job counseling services. The company is planning a new service line targeted to active seniors whoare retiring and looking forward to a new career. The service will sell for a flat $964 per client and will consist of a standardizedoffering. The service will consist of a total of 8 hours with a counseling specialist and a battery of tests to assess interests andaptitudes. Counseling specialists, who are contract employees, are paid $33 per hour. The testing is estimated to cost $124 per client.Administrative costs for the new service have not been estimated, but the company has collected information on counseling hours andadministrative costs for other services over the past 15 months. The following is a summary of a simple regression of administrativecosts on counseling hours:Simple Regression Analysis ResultsDependent variable-Administrative costs (monthly)Independent variable Counseling hours (monthly)Computed valuesInterceptCoefficient on independent variableCoefficient of correlationR²Required:a. What percentage of the variation in administrative costs is explained by the independent variable?85.5%71.7%94,1%$ 75,400$18.400.8550.717b. What is the total administrative cost for an estimated activity level of 5,440 counseling hours?$100,096$75,400$24,696Ⓒ$175,496O Some other amountc. What is the total estimated variable cost per client (assuming that counseling costs are variable costs)?$535.20$415.20O $279.20O $159.20O Some other amountd. What is the expected contribution margin per client to be earned?$696.00$548.80$576.00O$428.80e. What is the estimating equation for total cost based on number of clients implied by these results?Total cost = $75,400+ ($436.80 x Number of clients)O Total cost = $75,400+ ($403.20 x Number of clients)O Total cost = $75,400 + ($50.40x Number of counseling hours)Some other equation

Question

Accepted Answer

as per our company guidline we are supposed to answer only 3 sub part. for remaining please repost…

b. What is the total administrative cost for an estimated activity level of 5,440 counseling hours? O $100,096 O $75,400 $24,696 $175,496 O Some other amount