E5-12 (Algo) Estimating Cost Behavior Using Scattergraph, High-Low Method, and Least-Squares Regression [LO 5-2, 5-3, 5-4]

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

Month	Number of Units Shipped	Total Shipping Cost
January	65	$4,050
February	80	3,600
March	75	3,800
April	30	1,600
May	70	3,900
June	45	2,600
July	25	1,950

Part 2

Required:

3. Using the high-low method, calculate Odessas total fixed shipping costs and variable shipping cost per unit.

4. Perform a least-squares regression analysis on Odessas data.

5. Using the regression output, create a linear equation (y = a + bx ) for estimating Odessas shipping costs.