Refer to the Wendy’s Widgets data in M5-7. Using the high-low method, calculate the total fixed cost per month and the variable cost per widget. How does the estimate of fixed cost compare to what you estimated in M5-7?

Data from M5-7

Wendy’s Widgets builds the world’s best widgets. Information for the last eight months follows:

Prepare a scattergraph by plotting Wendy’s data on a graph. Then draw a line that you believe best fits the data points. Using the graph and line you have drawn, estimate Wendy’s total fixed cost per month.

Transcribed Image Text:

Month January February March Number of Widgets Produced 4,000 Total Cost $7,000 2,250 5,000 3,500 6,250 April 4,300 7,750 May 1,875 5,000 June 3,000 6,250 July 1,500 4,250 August 2,500 5,750