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Air Company is a wholesaler of custom-built air conditioning and heating units for commercial buildings. The data below show the number of units shipped and

Air Company is a wholesaler of custom-built air conditioning and heating units for commercial buildings. The data below show the number of units shipped and the total shipping expenses for the past whole year.

Month

Units Shipped

Total Shipping Expenses

October, 2021

12

$ 7,300

November, 2021

11

$ 7,000

December, 2021

10

$ 6,600

January, 2022

3

$ 2,900

February, 2022

6

$ 4,600

March, 2022

4

$ 3,400

April, 2022

5

$ 4,000

May, 2022

7

$ 5,000

June, 2022

8

$ 5,400

July, 2022

2

$ 2,400

August, 2022

1

$ 1,200

September, 2022

9

$ 6,000

Required:

Prepare a graph using the above data (use either Microsoft Excel or by hand on paper). Shipping expenses will be on the vertical axis and units shipped will be on the horizontal axis.

Does the relation between shipping expenses and the number of units shipped appear to be linear? Explain your response.

Based on a visual inspection of the graph, do you think shipping expense is a true variable cost or a mixed cost? Explain.

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