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 |
Period |
Sales |
Cost of Sales |
|
1 |
$15,000 |
$10,100 |
4 |
7,500 |
5,500 |
|
2 |
11,500 |
7,500 |
5 |
9,000 |
6,000 |
|
3 |
10,500 |
7,000 |
6 |
12,500 |
9,500 |