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Please answer the following questions below Required information Exercise 6A-4 High-Low Method; Scattergraph Analysis (L06-10) [The following information applies to the questions displayed below.] Archer
Please answer the following questions below
Required information Exercise 6A-4 High-Low Method; Scattergraph Analysis (L06-10) [The following information applies to the questions displayed below.] Archer Company is a wholesaler of custom-built air-conditioning units for commercial buildings. It gathered the following monthly data relating to units shipped and total shipping expense: Month January February March April June Units Total Shipping Shipped Expense 2 $ 1,400 5 5 $ 1,900 3 $ 1,300 a 4 $ 1,600 6 $ 1,900 7 $ 2,900 1 $ 800 May July Exercise 6A-4 Part 1 Required: 1-a. Prepare a scattergraph using the data given above. Plot cost on the vertical axis and activity on the horizontal axis. Instructions: 1. On the graph below, use the point tool (January) to plot units shipped on the horizontal axis and the shipping expense on the vertical axis. 2. Repeat the same process for the plotter tools (February to July). 3. To enter exact coordinates, click on the point and enter the values of x and y. 4. To remove a point from the graph, click on the point and select delete option. Instructions: 1. On the graph below, use the point tool (January) to plot units shipped on the horizontal axis and the shipping expense on the vertical axis. 2. Repeat the same process for the plotter tools (February to July). 3. To enter exact coordinates, click on the point and enter the values of x and y. 4. To remove a point from the graph, click on the point and select delete option. January $5,000 February $4,500 $4,000 March $3,500 $3,000 Shipping Expenses $2,500 April $2,000 $1,500 May $1,000 $500 June $0 0 1 2 3 4 5 6 7 8 9 10 July Units Shipped 1 1-b. Is there an approximately linear relationship between shipping expense and the number of units shipped? Yes No 2. Using the high-low method, estimate the cost formula for shipping expense. per unit Variable shipping expense Fixed shipping expense per month 4. What factors, other than the number of units shipped, are likely to affect the company's shipping expense? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) Weight of the units shipped Distance traveled ? Sales commissions Trade discounts given to repeat customers ? Express shipping to meet a deadlineStep by Step Solution
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