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Prepare the scatter diagram and insert the trendline or line of best-fit. Use a scale of 2  cm to represent 1,000 units on the x-axis & 2 cm to represent $50,000 on the yaxis. e) Using the line of best-fit, determine the company’s fixed cost per month and the variable  cost per unit. (Use 0 & 5,000 units.)

Prepare the scatter diagram and insert the trendline or line of best-fit. Use a scale of 2  cm to represent 1,000 units on the x-axis & 2 cm to represent $50,000 on the yaxis. e) Using the line of best-fit, determine the company’s fixed cost per month and the variable  cost per unit. (Use 0 & 5,000 units.)

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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d) Prepare the scatter diagram and insert the trendline or line of best-fit. Use a scale of 2 
cm to represent 1,000 units on the x-axis & 2 cm to represent $50,000 on the yaxis.
e) Using the line of best-fit, determine the company’s fixed cost per month and the variable 
cost per unit. (Use 0 & 5,000 units.) 

The table below shows monthly data collected on production costs and on the number of units produced over a twelve month period. Month July August September October November December January February March April May June Total Production Costs $230,000 250,000 260,000 220,000 340,000 330,000 200,000 210,000 240,000 380,000 350,000 290,000 Level of Activity (Units Produced) 3,500 3,750 3,800 3,400 5,800 5,500 2,900 3,300 3,600 5,900 5,600 5,000
Transcribed Image Text:The table below shows monthly data collected on production costs and on the number of units produced over a twelve month period. Month July August September October November December January February March April May June Total Production Costs $230,000 250,000 260,000 220,000 340,000 330,000 200,000 210,000 240,000 380,000 350,000 290,000 Level of Activity (Units Produced) 3,500 3,750 3,800 3,400 5,800 5,500 2,900 3,300 3,600 5,900 5,600 5,000
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