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Units Sold Shipping Expense January 32,000 $320,000 February 36,000 $350,000 March 46,000 $434,000 April 38,000 $360,000 May 34,000 $340,000 June 40,000 $370,000 July 50,000 $464,000
| Units Sold | Shipping Expense |
January | 32,000 | $320,000 |
February | 36,000 | $350,000 |
March | 46,000 | $434,000 |
April | 38,000 | $360,000 |
May | 34,000 | $340,000 |
June | 40,000 | $370,000 |
July | 50,000 | $464,000 |
August | 44,000 | $416,000 |
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- Using the high-low method, estimate a cost formula for shipping expense based on the data for the last eight months above. Show your calculations. [Hints: you need to figure out both variable and fixed cost elements to derive a cost formula.
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- In September, the company plans to sell 42,000 units at the current selling price of $75 per unit. How much would be the total shipping expenses for September? Show your calculations.
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