The following graph was constructed and data plotted to apply the visual-fit method. Then, the predicted total order-department costs for processing 90 orders was computed. Comment on the accuracy of the analysis. Do your own analysis and explain any differences. Assume the data in parentheses are accurate in thousands of dollars and number oforders.

S500 100, 450) (20, 280) (80, 420) (10, 240) (70, 320) (40, 240) 200 Fixed cost 200 Total cost 450, so variable cost 450 200 250 or 250100 orders = 2.50 per order 50 10 20 40 70 80 100 Orders Processed The total cost function is TC = 200 2.50 # Orders Processed TC90 Orders! = 200,000 + 2.50 90 = $200,225