Cool-It Company is a wholesaler of custom-built air conditioning units for commercial buildings. The data below show the number of units shipped and the total shipping expenses for the past eight months.

Required:
1. Use Microsoft Excel to prepare a scattergraph using the above data. Shipping expenses should be on the vertical axis and number of units shipped should be on the horizontal axis.
2. Does the relation between shipping expenses and the number of units shipped appear to be linear? Explain your response.
3. Based on a visual inspection of the scattergraph, do you think shipping expense is a true variable cost or a mixed cost? Explain your response.

Transcribed Image Text:

Month January February March April May June July August Number of Units Shipped 3 6 188LSIC 5 7 8 2 Total Shipping Expenses $3,600 $4,600 $3,400 $4,000 $4,600 $5,400 $2,400 $1,200