Cliff s Fresh Stacks Pancake Restaurant features sourdough pancakes made from
Cliff’s “Fresh Stacks” Pancake Restaurant features sourdough pancakes made from a strain of sourdough dating back to Confederation. To plan for the future, Cliff needs to figure out his cost behaviour patterns. He has the following information about his operating costs and the number of pancakes served:
Requirements
1. Prepare a scatter plot of Cliff’s pancake volume and operating costs.
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?
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