1 2 Round to 2 decimal places Month Packing Costs No of Orde

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Round to 2 decimal places

Month	Packing Costs	No. of Orders	Weight	Fragile Items
1	$            45,000	11,200	24,640	1,120
2	58,000	14,000	31,220	1,400
3	39,000	10,500	18,000	1,000
4	35,600	9,000	19,350	850
5	90,000	21,000	46,200	4,000
6	126,000	31,000	64,000	5,500
7	90,600	20,000	60,000	1,800
8	63,000	15,000	40,000	750
9	79,000	16,000	59,000	1,500
10	155,000	40,000	88,000	2,500
11	450,000	113,500	249,700	11,800
12	640,000	150,000	390,000	14,000
13	41,000	10,000	23,000	900
14	54,000	14,000	29,400	890
15	58,000	15,000	30,000	1,500
16	58,090	14,500	31,900	1,340
17	80,110	18,000	50,000	3,000
18	123,000	30,000	75,000	2,000
19	108,000	27,000	63,450	1,900
20	76,000	18,000	41,400	1,430
Totals	$       2,469,400	597,700	1,434,260	59,180

Solution

1) Variable Cost per Order: Cost No. of Orders High 640000 150000 Low 35600 9000 Difference 604400 141000 Variable Cost per order $                4.29 Fixed Cost: Using High Activity $                   -2,978.72 Using Low Activity $                   -2,978.72 Cost Equation: Y = -$2978.72+$4.29*x 2) PART 4 Cost Estimate given activity data: Estimated Activity No. of Orders           26,000 Can only use this Weight of Orders           57,000 No of Fragile Items                900 Cost Estimate $     1,08,561.28