Cost behaviour-scatter diagram

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Reference no: EM1348234

Phenix Corporation reports following information regarding its sales and cost of sales. Draw the estimated line of cost behavior by using the scatter diagram, and evaluate fixed costs and variable costs per unit sold. Then use the high-low method to estimate the fixed and variable components of the cost of sales.

Period Units Sold Cost of Sales Period Units Sold Cost of Sales
1 0 $2,500 6 2,000 5,500
2 400 3,100 7 2,400 6,100
3 800 3,700 8 2,800 6,700
4 1,200 4,300 9 3,200 7,300
5 1,600 4,900 10 3,600 7,900

Reference no: EM1348234

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