Question

Saved Help Sove ONE 6 A wholesaler of custom-built air-conditioning units for commercial buildings gathered the following monthly data relating to shipped and total shipping expense: Month January February March April May June July Unita shipped 2 5 3 4 6 7 1 Total shipping expense $2.000 $2,500 $1,900 $2,200 $2.500 $3,090 $1,400 6.19 Using the high-low method estimate the cost formula for shipping expenses, calculate the variable shipping expense as well Shipping expense per unit (All answers are whole numbers - unless specified otherwise. You should NOT include the $ sign or a comma E9. you shou 1000 for one thousand. Negative numbers should be added with a minus sign, eg.-1000 for a decrease or loss of one thous Variable shipping expenses 28167 per unit Fored shipping expense = $ per unit < Prev 25 of 26 !! Next > - + FS 78 F7 Here FB End 19 F10 @ 2 3 $ 4 5 6 & 7 8 + 11 9 W E R T Y U II ОТР S DFA C

Answer 1

variable shipping expense per unit=[Total cost at highest level-Total cost at lowest level]/(Highest level-Lowest level)

=(3090-1400)/(7-1)=$281.67

Fixed shipping expense=3090-(7*281.67)=$1118.33.