The graphical presentation of data for cost analysis purposes is an excellent way of starting an analysis. Look at the data in the table below and attempt to determine the behaviour of each cost before looking at the graphs derived from these data that are presented in the solution to this question. If you are honest with yourself, and don’t look first, you will appreciate the benefit of drawing a graph as a first step in the process of cost behaviour determination.

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Output (units) Cost Cost Cost 1 2 3 0 2,000 3,274 0 100 3,000 4,858 100 200 4,000 633 400 300 5,000 7,608 900 400 6,000 7,754 1,600 500 7,000 2,934 2,500 600 8,000 6,747 3,600 700 9,000 2,946 4,900 800 10,000 7,243 6,400 900 11,000 3,517 8,100 1,000 12,000 2,820 10,000