EXERCISE 5A-4 High-Low Method; Scattergraph Analysis LO5-10 Archer Company is a wholesaler of custom-built air-conditioning units for commercial buildings It gathered the following monthly data relating to units shipped and total shipping expense: Units Total Shipping Month Shipped Expense January . . $1,800 February . .. $2,300 March. . $1,700 April . . NO NUT DOW $2,000 May . $2,300 June . . $2,700 July ..... $1,200 Required: 1. Prepare a scattergraph using the data given above. Plot cost on the vertical axis and activity on the horizontal axis. Is there an approximately linear relationship between shipping expense and the number of units shipped? 2. Using the high-low method, estimate the cost formula for shipping expense. Draw a straight line through the high and low data points shown in the scattergraph that you prepared in requirement (1). Make sure your line intersects the Y-axis