Aspen, Inc., manufactures one model of computer desk. The following data are available regarding units shipped and total shipping costs.

Required:

1. Prepare a scattergraph of Aspen’s shipping cost and draw the line you believe best fits the data.
2. Based on this graph, estimate Aspen’s total fixed shipping costs per month.
3. Using the high-low method, calculate Aspen’s total fixed shipping costs and variable shipping cost per unit.
4. Perform a least-squares regression analysis on Aspen’s data.
5. Using the regression output, create a linear equation (Y = A + BX) for estimating Aspen’s shipping costs.

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Month Units Shipped Number of Total Shipping Cost January 30 $3,600 February 60 2,300 March 40 1,700 April 20 1,200 May 70 2,300 June 80 2,700 July 50 2,000