Asokan’s “Golden Brown” Pancake Restaurant features sourdough pancakes made from a strain of sourdough dating back to the Yukon gold rush. To plan for the future, Asokan needs to figure out his cost behaviour patterns. He has the following information about his operating costs and the number of pancakes served:
1. Prepare a scatter plot of Asokan’s pancake volume and operating costs. (Hint: If you use Excel, be sure to force the y-axis to zero.)
2. Do the data appear sound, or do there appear to be any outliers? Explain.
3. Based on the scatter plot, do operating costs appear to be variable, fixed, or mixed costs?
4. How strong of a relationship is there between pancake volume and operating costs?

  • CreatedApril 30, 2015
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