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Exercise 18-5  Scatter diagram and measurement of cost behavior  P1 Use the following information about unit sales and...

Exercise 18-5  Scatter diagram and measurement of cost behavior  P1

Use the following information about unit sales and total cost of sales to prepare a scatter diagram. Draw a cost line that reflects the behavior displayed by this cost. Determine whether the cost is variable, step-wise, fixed, mixed, or curvilinear.

Period

Unit Sales

Cost of Sales

Period

Unit Sales

Costs of Sales

1

760

$590

9

580

$390

2

800

560

10

320

240

3

200

230

11

240

230

4

400

400

12

720

550

5

480

390

13

280

260

6

620

550

14

440

410

7

680

590

15

380

260

8

540

430

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