Phillips Company manufactures air-conditioning units for commercial buildings and has noticed considerable variation in shipping expenses from month to month as per the data below:

Given the facts in part 3-13, are variable shipping expenses linear or non-linear?  Explain.

Data from Part 3-13

Estimate variable shipping expenses to ship 12 air conditioners if the shipping company reduces the variable cost per unit by I 0% for each unit shipped in excess of 10 units.

Transcribed Image Text:

Total Shipping Expense Units Shipped Month January... February. $2,200 $3,100 4 4 $2,600 $1,500 $2,200 March.... April.. May June $3,000 $3,600 July.... 8.