Problem $5$A$-9($Algo$)$ High$-$Low Method; Contrlbution Format Income Statement $[$LO$5-10]$

Milden Company is a distributor that wants to start using a contribution format income statement for planning purposes. The

company analyzed its expenses and developed the following cost formulas:

Because shipping expense is a mixed cost, the company needs to estimate the variable shipping expense per unit sold and the fixec

shipping expense per quarter using the following data:

Requlred:

Using the high$-$low method, estimate a cost formula for shipping expense in the form $Y=a+bx.$

In the first quarter of Year $3,$ the company plans to sell $41,000$ units at a selling price of $$59$ per unit. Prepare a contribution format

income statement for the quarter.

Complete this question by entering your answers in the tabs below.

Using the high$-$low method, estimate a cost formula for shipping expense in the form $Y=a+bx.$

Note: Round the Variable cost per unit to $2$ decimal places.

$Y=$