h Applying the Scattergraph MethodOki Products, Ltd. has observed the following processing costs at various levels of activity over the past 10 monthMonth10123945678UnitsProduced2,50011,00015,0005,5009,0008,5007,5007,00011,5006,000ProcessingCost$28,00052,00059,00038,00047,00052,00044,00041,00052,00041,000Required:1. Prepare a scattergraph by plotting these data on a graph. Plot cost on the vertical axis and units produced onthe horizontal axis. Fit a line to your plotted points by visual inspection.2. What is the approximate monthly fixed cost? The approximate variable cost per unit processed? Show yourcomputations.

Scatter diagram refers to the scatter plot or diagram which graphs the pairs of the numerical data…

Oki Products, Ltd. has observed the following processing costs at various levels Units Produced Processing Cost Month 10 1 9 2 3 4 5 6 7 8 2,500 11,000 15,000 5,500 9,000 8,500 7,500 7,000 11,500 6,000 $28,000 52,000 59,000 38,000 47,000 52,000 44,000 41,000 52,000 41,000 past 10 mon equired: Prepare a scattergraph by plotting these data on a graph. Plot cost on the vertical axis and units produces the horizontal axis. Fit a line to your plotted points by visual inspection. What is the approximate monthly fixed cost? The approximate variable cost per unit processed? Show computations.