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fixed cost is 800 3-10 Given the facts in part 3-8, if total fixed costs (excluding shipping) are $3,000 per month, estimate operating income for

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3-10 Given the facts in part 3-8, if total fixed costs (excluding shipping) are $3,000 per month, estimate operating income for August if seven air conditioners are produced and sold. 3-11 By how much would the total contribution margin decrease in August if Phillips decides to offer its customers a 5% price discount on the seven units? 3-12 By how much would operating income decrease in August if Phillips decides to offer its customers a 5% price discount on the seven units? 3-13 Estimate variable shipping expenses to ship 12 air conditioners if the shipping company reduces the variable cost per unit by 10% f each unit shipped in excess of 10 units. 3-14 Given the facts in part 3-13, estimate total shipping expenses for 12 air conditioners. 3-15 Given the facts in part 3-13, are variable shipping expenses linear or non-linear? Explain. Phillips Company manufactures air-conditioning units for commercial buildings and has noticed considerable variation in shipping expenses from month to month as per the data below: Month Units Shipped Total Shipping Expense 4 $2,200 January February 4 $3,100 March 5 $2,600 2 April May $1.500 3 $2,200 June 6 $3.000 $3,600 8 3-1 3-2 Which two months should be used if Phillips wants to estimate the behaviour of shipping expenses using the high-low method? Using the high-low method, what is the variable cost per unit to ship air conditioners? What is the fixed cost of shipping air conditioners? What is the cost formula for shipping expenses? If seven air conditioners are shipped in August, estimate the total shippine extensas 3-5

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