A wholesaler of custom-built air-conditioning units for commercial buildings gathered the following monthly data relating to units shipped and total shipping expense: Units shipped Month January February March Total shipping expense $2,000 $2,500 $1,900 $2,200 $2,500 $3,030 $1,950 3. April May June July 4 Using the high-low method estimate the cost formula for shipping expenses, calculate the variable shipping expense as well as fixed shipping expense per unit. (All answers are whole numbers - unless specified otherwise. You should NOT include the $ sign or a comma. E.g., you should type 1000 for one thousand. Negative numbers should be added with a minus sign, e.g., -1000 for a decrease or loss of one thousand.) Variable shipping expense = $ per unit. Fixed shipping expense = $ per unit.
A wholesaler of custom-built air-conditioning units for commercial buildings gathered the following monthly data relating to units shipped and total shipping expense: Units shipped Month January February March Total shipping expense $2,000 $2,500 $1,900 $2,200 $2,500 $3,030 $1,950 3. April May June July 4 Using the high-low method estimate the cost formula for shipping expenses, calculate the variable shipping expense as well as fixed shipping expense per unit. (All answers are whole numbers - unless specified otherwise. You should NOT include the $ sign or a comma. E.g., you should type 1000 for one thousand. Negative numbers should be added with a minus sign, e.g., -1000 for a decrease or loss of one thousand.) Variable shipping expense = $ per unit. Fixed shipping expense = $ per unit.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter3: Cost Behavior
Section: Chapter Questions
Problem 18E
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