Archer Company is a wholesaler of custom-built air-conditioning units for commercial buildings. It gathered the following monthly data relating to units shipped and total shipping expense Units Total Shipping Shipped Month January February March April May June July Expense $ 2,300 $ 2,800 $ 2,200 $ 2,500 $ 2,800 $ 3,800 $ 1,700 4 7 8 2 Exercise 5A-4 Part 1 Required 1-a. Prepare a scattergraph using the data given above. Plot cost on the vertical axis and activity on the horizontal axis. Instructions 1. On the graph below, use the point tool (January) to plot units shipped on the horizontal axis and the shipping expense on the vertical axis 2. Repeat the same process for the plotter tools (February to July) 3. To enter exact coordinates, click on the point and enter the values of x and y 4. To remove a point from the graph, click on the point and select delete option January 55,000 February 54,500 54,000 un $3,500 S3,000 $2.500 52,000 CD $1,500 51,000 5500 March April May June 0 123 4 5 6 7 810 July Units Shipped reset 1-b. Is there an approximately linear relationship between shipping expense and the number of units shipped? O Yes O No [The following information applies to the questions displayed belowj Archer Company is a wholesaler of custom-built air-conditioning units for commercial buildings. It gathered the following monthly data relating to units shipped and total shipping expense Units Total Shipping Shipped Month January February March April May June July Expense $ 2,300 $ 2,800 $ 2,200 $ 2,500 $ 2,800 $ 3,800 $ 1,700 4 7 8 2 Exercise 5A-4 Part 2 2. Using the high-low method, estimate the cost formula for shipping expense Variable shipping expense Fixed shipping expense per unit per month Archer Company is a wholesaler of custom-built air-conditioning units for commercial buildings. It gathered the following monthly data relating to units shipped and total shipping expense Units Total Shipping Shipped Month January February March April May June July Expense $ 2,300 $ 2,800 $ 2,200 $ 2,500 $ 2,800 $ 3,800 $ 1,700 4 7 8 2 Exercise 5A-4 Part 4 4. What factors, other than the number of units shipped, are likely to affect the company's shipping expense? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) Weight of the units shipped Distance traveled Sales commissions Trade discounts given to repeat customers Express shipping to meet a deadline
