Zerbel Company, a wholesaler of large, custom-built air conditioning units for commercial buildings, has noticed considerable fluctuation in its shipping expense from month to month: Units Total Shipping Shipped Expense Month January 4 February 7 March 5 April 2 May 3 June 6 July 8 $2,200 $3,100 $2,600 $1,500 $2,200 $3,000 $3,600 Using the high-low method, estimate the cost formula for shipping expense.

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 35P
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Zerbel Company, a wholesaler of large, custom-built air conditioning units
for commercial buildings, has noticed considerable fluctuation in its shipping
expense from month to month:
Units Total Shipping Shipped Expense
Month
January 4
February 7
March 5
April
2
May
3
June
6
July
8
$2,200
$3,100
$2,600
$1,500
$2,200
$3,000
$3,600
Using the high-low method, estimate the cost formula for shipping
expense.
Transcribed Image Text:Zerbel Company, a wholesaler of large, custom-built air conditioning units for commercial buildings, has noticed considerable fluctuation in its shipping expense from month to month: Units Total Shipping Shipped Expense Month January 4 February 7 March 5 April 2 May 3 June 6 July 8 $2,200 $3,100 $2,600 $1,500 $2,200 $3,000 $3,600 Using the high-low method, estimate the cost formula for shipping expense.
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