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Trend Chart

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Prepare a short range trend chart of the operations appraisal cost/production cost ratio using the following data:

Month Operational appraisal costs (thousands) Production costs (thousands)

Jan $10 $100
Feb $13 $120
Mar $9 $115
Apr $11 $145
May $9 $125
June $8 $95
Jul $8 $105

What information does the chart give? Suggest additional information that could be valuable.

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Solution Summary

The solution prepares a trend chart using the data given in the question and interprets it.

Solution Preview

Please see the chart attached.

From the chart, we can see a downward trend. This means that operational appraisal cost as a percent of total production costs have ...

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