Kim Wilson, controller for Max Enterprises, has decided to estimate the fixed and variable components associated with the company's shipping activity. She collected the following data for the past six months:

Package shipped and Total Shipping costs 

10------ $800 

20------$1,100 

15------$900 

12------$900 

18------$1,050 

25------$1,250 

Estimate the fixed and variable components for the shipping costs using the high-low method. Using the cost formula, predict the total cost of shipping if 14 package are shipped.

Answer rating: 100% (QA)

Using high low method we can calculate Variable cost as y2 y1 x2x... View the full answer