Reference no: EM132559117

Oki Products, Ltd. has observed the following processing costs at various levels of activity over the past 10 months:

Month          Units Produced           Processing  Cost

1                       2,500                    $28,000

2                        11,000                 52,000

3                           15,000                 59,000

4                            5,500                   38,000

5                             9,000                      47,000

6                           8,500                          52,000

7                           7,500                            44,000

8                              7,000                           41,000

9                               11,500                            52,000

10                                6,000                          41,000

Required:

Question 1: need a scattergraph by plotting these data on a graph. Plot cost on the vertical axis and units produced on the horizontal axis. Fit a line to your plotted points by visual inspection.

Question 2: What is the approximate monthly fixed cost? The approximate variable cost per unit processed? Show your computations.