EXERCISE $3-2$ Scattergraph Analysis $[$L$02]$

Oki Products, Ltd$.,$ has observed the following processing costs at various levels of activity over the last $15$

months:

Units

Processina

Required:

Prepare a scattergraph using the above data. Plot cost on the vertical axis and activity on the horizontal

axis. Fit a line to your plotted points using a ruler.

Using the quick$-$and$-$dirty method, what is the approximate monthly fixed cost? The approximate vari$-$

able cost per unit processed? Show your computations.