The following data relating to units shipped and total shipping expense have been assembled by Archer Company, a manufacturer of large, custom-built air-conditioning units for commercial buildings: Month Units
Shipped Total Shipping
Expense January 10 $ 5,650 February 7 4,080 March 7 3,980 April 5 3,150 May 4 2,510 June 18 8,820 July 3 2,220 Required: 1. Estimate a cost formula for shipping expense using the high-low method. y= + x
2. Not available in Connect. 3.
What factors, other than the number of units shipped, are likely to affect the company’s total shipping expense? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) Weight of the units shipped Distance travelled Number of workers used to manufacture the goods shipped Size of the units shipped Fixed costs to produce the units