A company reports the following information about its sales and cost of sales. Draw an estimated line
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A company reports the following information about its sales and cost of sales. Draw an estimated line of cost behavior using a scatter diagram, and compute fixed costs and variable costs per unit sold. Then use the high-low method to estimate the fixed and variable components of the cost ofsales.
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Period Units Cost of Sold Sales Period Units Cost of SodSales 0 $2,500 400 3,100 800 3,700 1,200 4300 1,600 4,900 .. 2,000 2.400 6,100 2.800 6.700 3,200 7.300 3.600 7,900 10
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