Oki Products, Ltd., has observed the following processing costs at various levels of activity over the last15 months:Units ProcessingMonth Produced Cost1 ......................................... 4,500 $38,0002 ......................................... 11,000 $52,0003 ......................................... 12,000 $56,0004 ......................................... 5,500 $40,0005 ......................................... 9,000 $47,0006 ......................................... 10,500 $52,0007 ......................................... 7,500 $44,0008 ......................................... 5,000 $41,0009 ......................................... 11,500 $52,00010 ......................................... 6,000 $43,00011 ......................................... 8,500 $48,00012 ......................................... 10,000 $50,00013 ......................................... 6,500 $44,00014 ......................................... 9,500 $48,00015 ......................................... 8,000 $46,000 Required:1. Prepare a scattergraph using the above data. Plot cost on the vertical axis and activity on the horizontalaxis. Fit a line to your plotted points using a ruler.2. Using the quick-and-dirty method, what is the approximate monthly fixed cost? The approximatevariable cost per unit processed? Show your computations.

Question

Oki Products, Ltd., has observed the following processing costs at various levels of activity over the last
15 months:
Units Processing
Month Produced Cost
1 ......................................... 4,500 $38,000
2 ......................................... 11,000 $52,000
3 ......................................... 12,000 $56,000
4 ......................................... 5,500 $40,000
5 ......................................... 9,000 $47,000
6 ......................................... 10,500 $52,000
7 ......................................... 7,500 $44,000
8 ......................................... 5,000 $41,000
9 ......................................... 11,500 $52,000
10 ......................................... 6,000 $43,000
11 ......................................... 8,500 $48,000
12 ......................................... 10,000 $50,000
13 ......................................... 6,500 $44,000
14 ......................................... 9,500 $48,000
15 ......................................... 8,000 $46,000

Required:
1. 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.
2. Using the quick-and-dirty method, what is the approximate monthly fixed cost? The approximate
variable cost per unit processed? Show your computations.

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