d) Prepare the scatter diagram and insert the trendline or line of best-fit. Use a scale of 2 cm to represent 1,000 units on the x-axis & 2 cm to represent $50,000 on the yaxis.e) Using the line of best-fit, determine the company’s fixed cost per month and the variable cost per unit. (Use 0 & 5,000 units.) The table below shows monthly data collected on production costs and on the number of unitsproduced over a twelve month period.MonthJulyAugustSeptemberOctoberNovemberDecemberJanuaryFebruaryMarchAprilMayJuneTotal ProductionCosts$230,000250,000260,000220,000340,000330,000200,000210,000240,000380,000350,000290,000Level of Activity(Units Produced)3,5003,7503,8003,4005,8005,5002,9003,3003,6005,9005,6005,000

The scatter diagram is a graphical representation of the relationship between two variables. A…

Prepare the scatter diagram and insert the trendline or line of best-fit. Use a scale of 2 cm to represent 1,000 units on the x-axis & 2 cm to represent $50,000 on the yaxis. e) Using the line of best-fit, determine the company’s fixed cost per month and the variable cost per unit. (Use 0 & 5,000 units.)

Prepare the scatter diagram and insert the trendline or line of best-fit. Use a scale of 2 cm to represent 1,000 units on the x-axis & 2 cm to represent $50,000 on the yaxis. e) Using the line of best-fit, determine the company’s fixed cost per month and the variable cost per unit. (Use 0 & 5,000 units.)

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter6: Optimization Models With Integer Variables

Section6.4: Fixed-cost Models

Problem 20P

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