Alden Co.'s monthly cost and sales data for its operating activities of the past year follow. Management wants to use these data to predict future fixed and variable costs.

Month         Sales          Total Cost        Month      Sales          Total Cost

1                  $325,000     $162,500           7          $355,000   $242,000

2                    170,000        106,250          8             275,000     156,750

3                    270,000         210,600          9            75,000        60,000

4                    210,000         105,000          10          155,000      135,625

5                    295,000         206,500           11          99,000        99,000

6                    195,000         117,000           12           105,000      76,650

1. Purpose a Scatter diagram for these data with sales volume (in $) plotted on the total cost and horizontal axis plotted on the vertical axis

2. Evaluate both the variable costs per sales dollar and the total monthly fixed costs using the high-low method. Show the total cost line on the scatter diagram in part 1.

3. Use the evaluated line of cost behavior and results from part 2 to predict future total cost when sales volume is $380,00 and $420,000.