O 2. 3. Express If a truck were driven expect to be incurred? Archer Company is a wholesaler of custom-built air-conditioning units for commercial buildings. It gathered the following monthly data relating to units shipped and total shipping expense: EXERCISE 5A-4 High-Low Method; Scattergraph Analysis LO5-10 Month January.. February.. March April.... May June... July Units Shipped 3 6 4 5 7 8 2 Total Shipping Expense $1,800 $2,300 $1,700 $2,000 $2,300 $2.700 $1,200 Required: 1. Prepare a scattergraph using the data given above. Plot cost on the vertical axis and activit on the horizontal axis. Is there an approximately linear relationship between shipping expen and the number of units shipped? Cost-Volume-Profit Relationships 2. Using the high-low method, estimate the cost formula for shipping expense. Draw a straight line through the high and low data points shown in the scattergraph you prepared in require- ment (1). Make sure your line intersects the Y-axis. 3. Comment on the accuracy of your high-low estimates assuming a least-squares regression analysis estimated the total fixed costs to be $910.71 per month and the variable cost to be $217.86 per unit. How would the straight line you drew in requirement 2 differ from a straight line that minimizes the sum of the squared errors? 4. What factors, other than the number of units shipped, likely affect the company's shipping expense? Explain.
O 2. 3. Express If a truck were driven expect to be incurred? Archer Company is a wholesaler of custom-built air-conditioning units for commercial buildings. It gathered the following monthly data relating to units shipped and total shipping expense: EXERCISE 5A-4 High-Low Method; Scattergraph Analysis LO5-10 Month January.. February.. March April.... May June... July Units Shipped 3 6 4 5 7 8 2 Total Shipping Expense $1,800 $2,300 $1,700 $2,000 $2,300 $2.700 $1,200 Required: 1. Prepare a scattergraph using the data given above. Plot cost on the vertical axis and activit on the horizontal axis. Is there an approximately linear relationship between shipping expen and the number of units shipped? Cost-Volume-Profit Relationships 2. Using the high-low method, estimate the cost formula for shipping expense. Draw a straight line through the high and low data points shown in the scattergraph you prepared in require- ment (1). Make sure your line intersects the Y-axis. 3. Comment on the accuracy of your high-low estimates assuming a least-squares regression analysis estimated the total fixed costs to be $910.71 per month and the variable cost to be $217.86 per unit. How would the straight line you drew in requirement 2 differ from a straight line that minimizes the sum of the squared errors? 4. What factors, other than the number of units shipped, likely affect the company's shipping expense? Explain.
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Related questions
Question
Transcribed Image Text:4.
2.
2.
3.
Express the varia
If a truck were driven 80,000 KI
expect to be incurred?
Archer Company is a wholesaler of custom-built air-conditioning units for commercial buildings.
It gathered the following monthly data relating to units shipped and total shipping expense:
EXERCISE 5A-4 High-Low Method; Scattergraph Analysis LO5-10
Month
January...
February.
March
April....
May
June.......****
July
Units
Shipped
3
6
4
5
7
8
2
Total Shipping
Expense
$1,800
$2,300
$1,700
$2,000
$2.300
$2.700
$1,200
Required:
1. Prepare a scattergraph using the data given above. Plot cost on the vertical axis and activity
on the horizontal axis. Is there an approximately linear relationship between shipping expense
and the number of units shipped?
Cost-Volume-Profit Relationships
Using the high-low method, estimate the cost formula for shipping expense. Draw a straight
line through the high and low data points shown in the scattergraph you prepared in require-
ment (1). Make sure your line intersects the Y-axis.
3. Comment on the accuracy of your high-low estimates assuming a least-squares regression
analysis estimated the total fixed costs to be $910.71 per month and the variable cost to be
$217.86 per unit. How would the straight line you drew in requirement 2 differ from a straight
line that minimizes the sum of the squared errors?
What factors, other than the number of units shipped, likely affect the company's shipping
expense? Explain.
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VIEWStep 5: Determine factors, other than number of units shipped, likely affect the company's shipping expense.
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