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Al Nassam Company, a wholesaler of large, custom-built air conditioning units for commercial buildings, has noticed considerable fluctuation in its shipping expense from month
Al Nassam Company, a wholesaler of large, custom-built air conditioning units for commercial buildings, has noticed considerable fluctuation in its shipping expense from month to month, as shown below:(5 Marks) (CLO 4) Month units shipped Total shipping expenses JAN 4 $2,200 FEB 7 $3,100 MARCH 5 2,600 APRIL 2 1,500 MAY 3 2,200 JUNE 6 3,000 JULY 8 3,600 Instructions 1. Using the high low method compute the variable cost per unit. 2. Using the high-low method, estimate the cost formula for shipping expense. 3. If the units shipped are 10 units, compute the total shipping expenses.
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