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Given Data: Month Number of Units Shipped Total Shipping Expenses January 3 $3,600 February 6 $4,600 March 4 $3,400 April 5 $4,000 May 7 $4,600
Given Data: Month Number of Units Shipped Total Shipping Expenses January 3 $3,600 February 6 $4,600 March 4 $3,400 April 5 $4,000 May 7 $4,600 June 8 $5,400 July 2 $2,400 August 1 $1,200
| Garrison - Managerial Accounting | |||||
| Excel Templates Chapter 3 | |||||
| Exercise 3-3 | |||||
| Part 1 | |||||
| Month | Number of Units Shipped | Total Shipping Expenses | |||
| High activity level | - | $ - | |||
| Low activity level | - | - | |||
| Change | - | $ - | |||
| Variable shipping expenses per unit shipped: | |||||
| Change in shipping expenses | $ - | ||||
| Divide by change in units shipped | - | ||||
| Variable shipping expenses per unit shipped | #DIV/0! | ||||
| Fixed shipping expenses per month: | |||||
| Total shipping expneses at high activity level | $ - | ||||
| Variable cost of shipping per unit shipped (above) | #DIV/0! | ||||
| Times number of units shipped at high activity level | - | ||||
| Variable cost element | #DIV/0! | ||||
| Fixed shipping expenses per month | #DIV/0! | ||||
| Part 2 | |||||
| Express the fixed and variable components of total monthly shipping expenses as a cost formula. Where Y = total shipping expenses and X = the number of units shipped. | |||||
| Part 3 | |||||
| If Cool-It Company expects to ship 20 units next month, would you feel comfortable using the cost formula from part 2 to estimate total shipping expenses? Why or why not? | |||||
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Strategic management concepts
Authors: Fred david
13th Edition
9780136120988, 136120997, 136120989, 978-0136120995
