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The following data relating to units shipped and total shipping expense have been assembled by Archer Company, a wholesaler of large, custom-built air-conditioning units for

The following data relating to units shipped and total shipping expense have been assembled by Archer Company, a wholesaler of large, custom-built air-conditioning units for commercial buildings:

Month Units Shipped Total Shipping Expense
January 3 $1,900
February 6 $2,400
March 4 $1,800
April 5 $2,100
May 7 $2,400
June 8 $3,400
July 2 $1,300

Required:
1a.

Prepare a scatter graph 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 (jan) to plot the shipping expense for the month of January. 2. Repeat the same process for the plotter tools (feb, mar, apr, may, june, 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.

1b.

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.

4.

What factors, other than the number of units shipped, are likely to affect the companys 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 answers and double click the box with the question mark to empty the box for a wrong answers.)

Weight of the units shipped
Distance traveled
Sales commissions
Express shipping to meet a deadline

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