Assuming the line intersects the y-axis at $2,000 and using the January activity levels what is the equation of the line that would be drawn for a scattergraph. (Round variable cost to 4 decimal places, e. g. 15.2513 and fixed cost to 0 decimal places, e. g 1526.)

Question

Riley Hutchinson

Business

26 December, 14:27

Assuming the line intersects the y-axis at $2,000 and using the January activity levels what is the equation of the line that would be drawn for a scattergraph. (Round variable cost to 4 decimal places, e. g. 15.2513 and fixed cost to 0 decimal places, e. g 1526.)

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Answers (1)

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Amaris Hodge · Answer 1

y = $0.0375 per copy + $2,000

Explanation:

The number of copies and the total company cost is given for the month-wise beginning from January to August

Since the question is asked for the January activity, so the equation is shown below:

Variable cost per copy = (Total copy cost - value at line intersects y-axis) : number of copies

y = ($3,500 - $2,000) : 40,000

y = 1,500 : 40,000

y = $0.0375 per copy

Now the equation is

y = $0.0375 per copy + $2,000