Refer to the data for Archer Company in Exercise 3-6.
Data From Ex 3-6
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:
1. Using the least-squares regression method, estimate a cost formula for shipping expense.
2. If you also completed Exercise 3-6, prepare a simple table comparing the variable and fixed cost elements of shipping expense as computed under the quick-and-dirty method, the high-low method, and the least-squares regression method.