Given the following mixed costs at various levels of production, complete the requirements.

1. Plot the data on a scattergraph, and visually fit a straight line through the points.
2. Based on your graph, estimate the monthly fixed cost and the variable cost per unit produced.
3. Compute the total cost of producing eight units in a month, assuming that the same relevant range applies.
4. Interpretive Question: Why is it so important to be able to determine the components of a mixedcost?

Transcribed Image Text:

Units Produced Mixed Costs Month January $24.00 February March April May 21.00 30.00 25.00 231 54