Cost Behaviour Using a Scatter Diagram
Not what you're looking for?
Phenix Corporation reports the following information about its sales and cost of sales. Draw an estimated line of cost behavior using a scatter diagram, and compute fixed costs and variable costs per unit sold. Then use the high-low method to estimate the fixed and variable components of the cost of sales.
Period Units Sold Cost of Sales Period Units Sold Cost of Sales
1 0 $2,500 6 2,000 5,500
2 400 3,100 7 2,400 6,100
3 800 3,700 8 2,800 6,700
4 1,200 4,300 9 3,200 7,300
5 1,600 4,900 10 3,600 7,900
Purchase this Solution
Solution Summary
The solution uses the high-low method to estimate the fixed and variable components of the cost of sales.
Purchase this Solution
Free BrainMass Quizzes
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.
Social Media: Pinterest
This quiz introduces basic concepts of Pinterest social media
Learning Lean
This quiz will help you understand the basic concepts of Lean.
Business Ethics Awareness Strategy
This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.
Marketing Management Philosophies Quiz
A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.