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Find the cost formula using the Scattergraph method

Find the cost formula using the Scattergraph method

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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Find the cost formula using the Scattergraph method

     

 

Luisa Crimini has been operating a beauty shop in a college town for the past 10 years. Recently, Luisa rented space next to her shop and opened a tanning salon. She anticipated that the costs for the tanning service would primarily be fixed but found that the tanning salon costs increased with the number of appointments. Costs for this service over the past eight months are as follows: Month January February March April May June July August Tanning Appointments 700 2,000 3,500 2,500 1,500 2,300 2,150 3,000 Total Cost $ 1,754 2,140 2,790 2,400 1,790 2,275 2,200 2,640
Transcribed Image Text:Luisa Crimini has been operating a beauty shop in a college town for the past 10 years. Recently, Luisa rented space next to her shop and opened a tanning salon. She anticipated that the costs for the tanning service would primarily be fixed but found that the tanning salon costs increased with the number of appointments. Costs for this service over the past eight months are as follows: Month January February March April May June July August Tanning Appointments 700 2,000 3,500 2,500 1,500 2,300 2,150 3,000 Total Cost $ 1,754 2,140 2,790 2,400 1,790 2,275 2,200 2,640
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