Solution-Draw an estimated line of cost behavior

Draw an estimated line of cost behavior

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Reference no: EM131538962

Question: A company reports the following information about its sales and its cost of sales. Each unit of its product sells for $500. Use these data to prepare a scatter diagram. Draw an estimated line of cost behavior and determine whether the cost appears to be variable, fixed, or mixed.

Period Sales Cost of Sales

1 . . . . . . . . . . . . . . $15,000 $10,100

2 . . . . . . . . . . . . . . 11,500 7,500

3 . . . . . . . . . . . . . . 10,500 7,000

4 . . . . . . . . . . . . . . 7,500 5,500

5 . . . . . . . . . . . . . . 9,000 6,000

6 . . . . . . . . . . . . . . 12,500 9,500

Reference no: EM131538962

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Draw an estimated line of cost behavior

Reference no: EM131538962

Reference no: EM131538962

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