Lube-for-Less is a car-care centre specializing in ten-minute oil changes. Lube-for-Less has two service bays, which limits
Question:
1. Prepare a scatter plot graphing the volume of oil changes (x-axis) against the companys monthly operating expenses (y-axis). Graph by hand or use Excel.
2. How strong does the relationship appear to be between the companys operating expenses and the number of oil changes performed each month? Explain. Does there appear to be any outliers in the data? Explain.
3. Based on the graph, do the companys operating costs appear to be fixed, variable, or mixed? Explain how you can tell.
4. Would you feel comfortable using this information to project operating costs for a volume of 4,000 oil changes per month? Explain.
Step by Step Answer:
Managerial Accounting
ISBN: 978-0176223311
1st Canadian Edition
Authors: Karen Wilken Braun, Wendy Tietz, Walter Harrison, Rhonda Pyp