Linda knows that total shipping cost is a mixed cost for her company and is in the process of using the high-low method to determine the cost formula for that cost.Based on an analysis of data over several months she has determined that the high point is $42,520 shipping cost at 10,610 units shipped and that the low point is $32,800 at 7,370 units shipped.

Required:

Round all answers to the nearest full dollar.

[Answer format: number, no dollar sign, no commas, no decimals]

A. (1 mark) Compute the dollar amount of the difference in shipping cost between the high point and the low point.

Answer:$Answer

B. (2 marks) Compute the variable portion of the cost formula expressed as the variable shipping cost per unit.

Answer:$Answer

C. (1 mark) Compute the fixed shipping cost portion of the cost formula.

Answer:$Answer