3 4 5 EXERCISE 3-2 Scattergraph Analysis (L02] Oki Products, Ltd., has observed the following processing costs at various levels of activity over the last 15 months: Units Processing Month Produced Cost 1 4,500 $38,000 2 11,000 $52,000 12,000 $56,000 5,500 $40,000 9,000 $47.000 10,500 $52,000 7 7,500 $44,000 5,000 $41,000 11,500 $52,000 10 6,000 $43,000 11 8,500 $48,000 12 10,000 $50,000 13 6,500 $44,000 14 9,500 $48,000 15 8,000 $46,000 6 8 9 Chapter 3 Required: 1. Prepare a scattergraph using the above data. Plot cost on the vertical axis and activity on the horizontal axis. Fit a line to your plotted points using a ruler. 2. Using the quick-and-dirty method, what is the approximate monthly fixed cost? The approximate vari- able cost per unit processed? Show your computations