On a scattergraph,you must "fit" a line to the plotted points.Once the line is drawn,
A)Calculate the fixed and variable costs using basic algebra.
B)You must use a statistical technique to identify the fixed and variable costs.
C)You must choose more than one point to calculate the fixed and variable costs.
D)Use regression analysis to calculate the fixed and variable components of the total cost.

Question

Quizplus · Accepted Answer

Once the line is drawn on a scattergraph, you can calculate the fixed and variable costs using basic algebra by identifying the slope (variable cost per unit) and the y-intercept (fixed cost).

On a Scattergraph,you Must "Fit" a Line to the Plotted