Question: Refer to the data for Archer Company in Exercise 56. Required: 1. Using the least-squares regression method, estimate a cost formula for shipping expense. 2.

Refer to the data for Archer Company in Exercise 5—6.

Total Shipping Expense Units Month Shipped January February. March.... 3 $1,800 $2,300 $1,700 $2,000 4 April.. May .. Ju

Required:

1. Using the least-squares regression method, estimate a cost formula for shipping expense.

2. If you also completed Exercise 5—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.

Total Shipping Expense Units Month Shipped January February. March.... 3 $1,800 $2,300 $1,700 $2,000 4 April.. May .. June... 5 $2,300 $2,700 $1,200 July.... 2

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