Cape Breton University Introductory Managerial Accounting Test 1 Acct1204 Karen Rowe 1. The following information has been provided for the shipping costs for Ariel's Treasures Limited for the last 6 months: November December January February March April Packages Shipped 2,900 3,050 1,300 1,400 1,900 2,300 Shipping costs $74,700 80,000 42,200 41,800 51,500 60,800 The manager of Ariel's Treasures is trying to figure out shipping costs for the next 2 months and wants to know the fixed and variable elements of their shipping costs. Required: a. Using the high-low method, estimate the cost formula for shipping costs by calculating the variable and fixed costs. b. Using the cost formula derived in part a, what do you expect the shipping costs would be for May and June of the number of packages shipped is 2,500 for May and 2,000 for June. Show each answer separately