Cool-It Company is a wholesaler of custom-built air conditioning units for commercial buildings. The data below...
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Cool-It Company is a wholesaler of custom-built air conditioning units for commercial buildings. The data below show the number of units shipped and the total shipping expenses for the past eight months. Month January February March April May June July August Number of Units Total Shipping Shipped 3 6 4 Fixed shipping expense Variable cost element 5 7 Y = 8 2 1 Required: 1. Using the high-low method, estimate the fixed shipping expenses per month and the variable cost of shipping each unit. Expenses $3,600 $4,600 $3,400 $4,000 $4,600 $5,400 $2,400 $1,200 per month per unit 2. Express the fixed and variable components of total monthly shipping expenses as a cost formula. X Cool-It Company is a wholesaler of custom-built air conditioning units for commercial buildings. The data below show the number of units shipped and the total shipping expenses for the past eight months. Month January February March April May June July August Number of Units Total Shipping Shipped 3 6 4 Fixed shipping expense Variable cost element 5 7 Y = 8 2 1 Required: 1. Using the high-low method, estimate the fixed shipping expenses per month and the variable cost of shipping each unit. Expenses $3,600 $4,600 $3,400 $4,000 $4,600 $5,400 $2,400 $1,200 per month per unit 2. Express the fixed and variable components of total monthly shipping expenses as a cost formula. X
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Answer rating: 100% (QA)
ANSWER 1 iHighest activity cost 5400 iiLowest activity cost 1200 iiiHighest activity 8 ivLowest ac... View the full answer
Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
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