High-Low Method; Scattergraph Analysis The following data below relates to units shipped and total shipping expense have been assembled by Macey Company, a wholesaler of large, custom-built solar water heaters for private households: Month Units shipped Total Shipping Expense January 3 $ 1,800 February 6 $ 2,300 march 4 $ 1,700 April 5 $ 2,000 May 7 $ 2,300 June 8 $ 2,700 July 2 $ 1,200 Required: Using the high-low method, estimate a cost formula for shipping Express the cost formula as a linear equation in the form Y=a + Assume that 9 units are budgeted for the month of Use the cost formula above to calculate: The total variable cost for shipping for the month of August The total cost of shipping for the month of
High-Low Method; Scattergraph Analysis
The following data below relates to units shipped and total shipping expense have been assembled by Macey Company, a wholesaler of large, custom-built solar water heaters for private households:
Month |
Units shipped |
Total Shipping Expense |
January |
3 |
$ 1,800 |
February |
6 |
$ 2,300 |
march |
4 |
$ 1,700 |
April |
5 |
$ 2,000 |
May |
7 |
$ 2,300 |
June |
8 |
$ 2,700 |
July |
2 |
$ 1,200 |
Required:
- Using the high-low method, estimate a cost formula for shipping
- Express the cost formula as a linear equation in the form Y=a +
- Assume that 9 units are budgeted for the month of Use the cost formula above to calculate:
- The total variable cost for shipping for the month of August
- The total cost of shipping for the month of
- Which method separating mixed cost is most accurate? Provide reasons for your answer based on the strengths and weaknesses of the various methods used for separating mixed
The president of the company has no confidence in the high-low method and would like you to check your results using a scattergraph.
Prepare a scattergraph, using the data given above. Plot cost on the vertical axis and activity on the horizontal axis. Use a ruler to fit a straight line to your plotted points.
Using your scattergraph, estimate the approximate variable cost per unit shipped and the approximate fixed cost per month.
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High-Low Method; Scattergraph Analysis
The following data below relates to units shipped and total shipping expense have been assembled by Macey Company, a wholesaler of large, custom-built solar water heaters for private households:
Month |
Units shipped |
Total Shipping Expense |
January |
3 |
$ 1,800 |
February |
6 |
$ 2,300 |
march |
4 |
$ 1,700 |
April |
5 |
$ 2,000 |
May |
7 |
$ 2,300 |
June |
8 |
$ 2,700 |
July |
2 |
$ 1,200 |
Required:
- Which method separating mixed cost is most accurate? Provide reasons for your answer based on the strengths and weaknesses of the various methods used for separating mixed
The president of the company has no confidence in the high-low method and would like you to check your results using a scattergraph.
Prepare a scattergraph, using the data given above. Plot cost on the vertical axis and activity on the horizontal axis. Use a ruler to fit a straight line to your plotted points.
Using your scattergraph, estimate the approximate variable cost per unit shipped and the approximate fixed cost per month.
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