304 PM eztomheducationcom TMobile LTE 77 The following data

3:04 PM ezto.mheducation.com T-Mobile LTE 77% The following data relating to units shipped and total shipping expense have been assembled by Archer Company, a wholesaler of large, custom-built air-conditioning units for commercial buildings: Required: 1a. Prepare a scatter graph using the data given above. (Plot cost on the vertical axis and activity on the horizontal axis.) Instructions: for the month of January july) y. option. 1. On the graph below, use the point tool (jan) to plot the shipping expense 2. Repeat the same process for the plotter tools (feb, mar, apr, may, june, 3. To enter exact coordinates, click on the point and enter the values of x and 4. To remove a point from the graph, click on the point and select delete Uits Shipped 1b. Is there an approximately linear relationship between shipping expense and the number of units shipped? 2. Using the high-low method, estimate the cost formula for shipping expense

Solution

1b. Yes

2.

4. Express shipping to meet a deadline

Weight of units shipped

Distance travelled

Note: Scatter-graph not done since already prepared.

	Units	Shipping
	Shipped	Expense
High activity level	7	$       3,700
Low activity level	1	$       1,600
Change	6	$       2,100
Variable cost element	$350	per unit
($2100/6)
Fixed cost	$1,250
[$3700 - (7 x $350)]
[$1600 - (1 x $350)]