Question: E 3 . 3 ( LO 1 ) , AP Nearing the end of its first 7 months of operations, a small consulting firm is
ELO AP Nearing the end of its first months of operations, a small consulting firm is analyzing two of its costs that seemed unpredictable: printing costs and travel costs. The printing costs clearly increased as the number of clients serviced increased, but the relationship didnt appear to be entirely variable. The travel costs, on the other hand, were quite steady per client within the middle phase of its normal activity, but the cost leveled out over low and high ends of their capacity level. Scatter plots for the two costs are as follows.Determine cost behavior information from a scatter plot.
middle phase of its normal activity, but the cost leveled out over low and high ends of their capacity level. Scatter plots for the two costs are as follows.
otal
Required
a Does plot exhibit linearity within the given of activity? Explain. What is the approximate range of activity shown here for this set of observations?
b Does plot exhibit linearity within the given range of activity? Explain. What is the approximate range of activity shown here for this set of observations?
relevant to the firm's prediction of its printing and travel costs going forward.
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