Cornerstones of Managerial Accounting 6th Edition by Maryanne Mowen,Don Hansen ,Dan Heitger

Exercise 23

Scattergraph Method
Luisa Crimini has been operating a beauty shop in a college town for the past 10 years. Recently, Luisa rented space next to her shop and opened a tanning salon. She anticipated that the costs for the tanning service would primarily be fixed but found that tanning salon costs increased with the number of appointments. Costs for this service over the past eight months are as follows:

Refer to the information for Luisa Crimini above.
Required:
CONCEPTUAL CONNECTION Prepare a scattergraph based on Luisa's data. Use cost for the vertical axis and number of tanning appointments for the horizontal. Based on an examination of the scattergraph, does there appear to be a linear relationship between the cost of tanning services and the number of appointments?