question archive Walton Woodcraft Company manufactures “antique” wooden cabinets to house modern televisions

Walton Woodcraft Company manufactures “antique” wooden cabinets to house modern televisions

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Walton Woodcraft Company manufactures “antique” wooden cabinets to house modern televisions. The Company began operations in January of last year. Sidney Myrick, the owner, asks for your assistance. He believes that he needs to better understand the cost of the cabinets for pricing purposes. You have collected the following data concerning actual production over the past year:

  Number of      
Month Cabinets Produced Total Cost
January 880   $ 21,400  
February 3,650     32,500  
March 1,950     29,100  
April 690     18,000  
May 1,590     28,900  
June 1,310     27,500  
July 1,140     25,300  
August 1,770     31,200  
September 2,340     32,900  
October 2,930     31,900  
November 3,300     32,500  
December 350     9,400  
 

Required

To understand the department’s cost behavior, you decide to plot the points on graph paper and sketch a total cost line.

(1) Enter the number of units and their costs in increasing order.

Enter the number of units and their costs in increasing order.

   
 
 
Month Number of Cabinets Produced Total Cost
     
     
     
     
     
     
     
     
     
     
     
     

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