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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	Units Shipped	Total Shipping Expense
January	4	$ 1,600
February	7	$ 2,100
March	5	$ 1,500
April	6	$ 1,800
May	8	$ 2,100
June	9	$ 3,100
July	2	$ 1,000

1-a. Prepare a scattergraph using the data given above. Plot cost on the vertical axis and activity on the horizontal axis.

2. Using the high-low method, estimate the cost formula for shipping expense.

Variable shipping expense		per unit
Fixed shipping expense		per month

4. What factors, other than the number of units shipped, are likely to affect the companys shipping expense?

check all that apply

• Weight of the units shippedunanswered
• Distance traveledunanswered
• Sales commissionsunanswered
• Trade discounts given to repeat customersunanswered
• Express shipping to meet a deadline

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. (i) 1-b. Is there an approximately linear relationship between shipping expense and the number of units shipped