Use the following information about sales and costs to


Question: Use the following information about sales and costs to prepare a scatter diagram. Draw a cost line that reflects the behavior displayed by this cost. Determine whether the cost is variable, step-wise, fixed, mixed, or curvilinear.

Period                    Sales              Costs

1 . . . . . . . . . . . . . $760              $590

2 . . . . . . . . . . . . . 800                 560

3 . . . . . . . . . . . . . 200                 230

4 . . . . . . . . . . . . . 400                 400

5 . . . . . . . . . . . . . 480                 390

6 . . . . . . . . . . . . . 620                 550

7 . . . . . . . . . . . . . 680                 590

8 . . . . . . . . . . . . . 540                 430

9 . . . . . . . . . . . . . $580              $390

10 . . . . . . . . . . . . . 320                240

11 . . . . . . . . . . . . . 240                230

12 . . . . . . . . . . . . . 720                550

13 . . . . . . . . . . . . . 280                260

14 . . . . . . . . . . . . . 440                410

15 . . . . . . . . . . . . . 380                260

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Accounting Basics: Use the following information about sales and costs to
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