Estimate the cost formula for shipping expense

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Question - High-Low Method; Scattergraph Analysis

Zerbel Company, a wholesaler of large, custom-built air conditioning units for commrcial buildings, has noticed considerable fluctuation in its shipping expense from month to month, as shown in the attachment:

Month

Units Shipped

Total Shipping Expense

January

4

$2,200

February

7

$3,100

March

5

$2,600

April

2

$1,500

May

3

$2,200

June

6

$3,000

July

8

$3,600

Using the high-low method, estimate the cost formula for shipping expense.

Reference no: EM131817330

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