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Diagnostic Tests Completed Month Cost January 3,050. $61,000 February 4,500.. 74,500 March 7,100. 99,000 April 6,200.. 95,600 May 4,700. 74,800 June 5,900.. 89,000 July. 6,000.. 91,000 August 6,100. 90,000 September 5,300. 87,000 October 4,900. 76,200 November 4,800. 78,100 December 5,050. 80,700

Diagnostic Tests Completed Month Cost January 3,050. $61,000 February 4,500.. 74,500 March 7,100. 99,000 April 6,200.. 95,600 May 4,700. 74,800 June 5,900.. 89,000 July. 6,000.. 91,000 August 6,100. 90,000 September 5,300. 87,000 October 4,900. 76,200 November 4,800. 78,100 December 5,050. 80,700

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The Iowa City Veterinary Laboratory performs a variety of diagnostic tests on commercial and domestic animals. The lab has incurred the following costs over the past year.

 

Required:
1. Plot the data above in a scatter diagram. Assign cost to the vertical axis and the number of diagnostic tests to the horizontal axis. Visually fit a line to the plotted data.
2. Using the visually fit line, estimate the monthly fixed cost and the variable cost per diagnostic test.

Diagnostic Tests Completed Month Cost January 3,050. $61,000 February 4,500.. 74,500 March 7,100. 99,000 April 6,200.. 95,600 May 4,700. 74,800 June 5,900.. 89,000 July. 6,000.. 91,000 August 6,100. 90,000 September 5,300. 87,000 October 4,900. 76,200 November 4,800. 78,100 December 5,050. 80,700
Transcribed Image Text:Diagnostic Tests Completed Month Cost January 3,050. $61,000 February 4,500.. 74,500 March 7,100. 99,000 April 6,200.. 95,600 May 4,700. 74,800 June 5,900.. 89,000 July. 6,000.. 91,000 August 6,100. 90,000 September 5,300. 87,000 October 4,900. 76,200 November 4,800. 78,100 December 5,050. 80,700
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