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ACM Transport ships goods from Aqaba to Amman using Vans. The variable cost per shipment is only the vans' fuel cost. Fixed costs are the

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ACM Transport ships goods from Aqaba to Amman using Vans. The variable cost per shipment is only the vans' fuel cost. Fixed costs are the van-lease costs (leased on monthly bases), drivers' salary (paid on monthly basis with no over-time), and other administrative costs. The current capacity for vans is to ship up to 900 shipments monthly. The company charges its clients a fixed price of $240 per shipment from Aqaba to Amman. The company provided the following data about shipping costs incurred in the last 6 months and the related shipping costs: Month Number of shipments Shipping Costs January 601 $127740 February 587 $123341 March 666 $130873 April 620 $126676 June 575 $122410 July 617 $123680 Instructions: 1. Using high and low method, calculate: a. The variable cost per shipment, and the monthly fixed costs. b. If the company plans to ship 800 shipments in October, what is the expected total shipping costs for October? 2- Calculate the break-even point in dollar value for the company. 3- Based on the above, and assuming that the company expects that the government will increase the fuel price by 10% from the current price, and that the company cannot increase its shipping price, how many shipments shall the company ship every month to achieve a $80,000 of target profit? Is it possible to achieve this target profit taking into account the above facts? explain in detail 4- Ignoring instruction number 3 above, what the company can do to increase the monthly profits, assuming that the government determines the fuel price. Set a scenario and explain in numbers and as a narrative

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