Question
[The following information applies to the questions displayed below.] Phillips Company manufactures air-conditioning units for commercial buildings and has noticed considerable variation in shipping
[The following information applies to the questions displayed below.] Phillips Company manufactures air-conditioning units for commercial buildings and has noticed considerable variation in shipping expenses from month to month as per the data below: Units Total Shipping Month Shipped Expense January 4 $2,080) February 4 $2,980 March. 5. $2,450 April 2 $1,272 May 3 $2,100 June 6 $2,820 July 8 $4,032 2. Using the high-low method, what is the variable cost per unit to ship air conditioners? Variable cost per unit 3. What is the fixed cost of shipping air conditioners? Fixed cost 4. What is the cost formula for shipping expenses? Y= X 5. If seven air conditioners are shipped in August, estimate the total shipping expenses. Total shipping expense 6. If nine air conditioners are shipped in September, estimate the fixed shipping expenses. Fixed expense 7. If 10 air conditioners are shipped in October, estimate the variable shipping expense. Variable expense B. If the air conditioners have an average sales price of $6,500, variable direct manufacturing costs are $3,250 per unit, variable manufacturing costs (excluding overhead) are $1,300 per unit, and variable selling and administration costs (excluding shipping) are $260 per unit, what is the contribution margin per unit? Contribution margin per unit 9. Given the facts in part 3-8, estimate the total contribution margin for August if seven air conditioners are produced and sold. Total contribution margin 10. Given the facts in part 3-8, if total fixed costs (excluding shipping) are $1,600 per month, estimate operating income for August if seven air conditioners are produced and sold. Operating income
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