Alden Co.'s monthly unit sales and total cost data for its operating activities of the past year follow. Problem 5-2A Management wants to use these data to predict future fixed and variable costs. Scatter diagram and cost behavior estimation Month Units Sold Total Cost . Month Units Sold Total Cost P1 320,000 $160,000 100,000 280,000 220,000 340,000 280,000 80,000 160.000 11. .. .100,000 $220,000 160,000 64,000 140,000 100,000 80,000 .160,000 100,000 00,000 230,000 200,000 120,000 10 12 212 Chapter 5 Cost Behavior and Cost-Volume-Profit Analysis Required 1. Prepare a scatter diagram for these data with sales volume (in units) plotted on the horizontal axis and total cost plotted on the vertical axis. Draw the total costs line on the scatter diagram in part 1. Use the estimated line of cost behavior and results from part 2 to predict future total costs when sales Check (2) variable costs. 2. Estimate both the variable costs per unit and the total monthly fixed costs using the high-low method. $0.60 per unit; fixed costs, $16,000 3. volume is (a) 200,000 units and (b) 300,000 units