The following data below relates to units shipped and total shipping expense have been assembled by Popoppo Company, a wholesaler of large, custom-built solar water heaters for private households: Months Units shipped Total Shipping Expense Jan 3 $1800 Feb 6 $2300 Mar 4 $1700 Apr 5 $2000 May 7 $2300 Jun 8 $2700 Jul 2 $1200 Required:
The following data below relates to units shipped and total shipping expense have been assembled by
Popoppo Company, a wholesaler of large, custom-built solar water heaters for private households:
| Months | Units shipped | Total Shipping Expense |
| Jan | 3 | $1800 |
| Feb | 6 | $2300 |
| Mar | 4 | $1700 |
| Apr | 5 | $2000 |
| May | 7 | $2300 |
| Jun | 8 | $2700 |
| Jul | 2 | $1200 |
Required:
1) 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 costs.
2) The president of the company has no confidence in the high-low method and would like you
to check your results using a scattergraph.
- a. 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. - b. Using your scattergraph, estimate the approximate variable cost per unit shipped and the
approximate fixed cost per month.
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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 costs. (
by Bartleby Expert) 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 costs.
by Bartleby Expert
