Refer to the preceding exercise. The divisional controller at Serendipity Sound’s Minneapolis Division has estimated the following cost data for the division’s sound systems. (Assume there are no fixed costs.)

Quantity Produced Average Cost

and Sold per Month per Unit

20........................................................................................$450

40........................................................................................ 425

60........................................................................................ 410

80........................................................................................ 430

100...................................................................................... 445

Required:

1. Prepare a table similar to panel C of Exhibit 15–2 summarizing Serendipity Sound’s cost relationships.

2. Draw a graph similar to panel A of Exhibit 15–2 reflecting the data tabulated in requirement (1).