Selecting a Basis for Predicting Shipping Expenses (Requires Computer Spreadsheet*)

Boom Company assembles and sells portable speaker systems throughout the midwest. In an effort to improve the planning and control of shipping expenses, management is trying to determine which of

three variables?units shipped, weight shipped, or sales value of units shipped?has the closest

relationship with shipping expenses. The following information is available:

Units Shipped Weight Shipped (Egg) Sales value of Units Shipped Shipping Expenses May 6,000 9,300 $200,000 $8,960 June 10,000 12,000 220,000 12,320