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Could someone answer for me this question . Thank you in advance EXER The following data relating to units shipped and total shipping expense have
Could someone answer for me this question . Thank you in advance EXER The following data relating to units shipped and total shipping expense have been assembled by Archer Company, a wholesaler of large, custom-built air-conditioning units for commercial buildings: Month January February March April May June July Units Shipped 3 6 4 5 7 8 2 Total Shipping Expense $1,800 $2,300 $1,700 $2,000 $2,300 $2,700 $1,200 Required: 1. Using the high-low method, estimate a cost formula for shipping expense. 2. The president of the company has no confidence in the high-low method and would like you to check your results using a scattergraph. a. Prepare a scattergraph, using the data given above. Plot cost on the vertical axis and activity on the horizontal axis. Use a ruler to fit a straight line to your plotted points. b. Using your scattergraph, estimate the approximate variable cost per unit shipped and the approximate fixed cost per month with the quick-and-dirty method. 3. What factors, other than the number of units shipped, are likely to affect the company's total shipping expense? Explain. EXERCISE 3-7 Cost Behavior, High-Low Method (L01, L03) ULT
Could someone answer for me this question . Thank you in advance
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