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 |
Get Answers For Free
Most questions answered within 1 hours.