Question
what is variable expense??
fixed shipping expense is correct
*note* variable expense is not $25 or $250
pter 6 Graded Homework i Required information [The following information applies to the questions displayed below.] commercia
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Answer #1
Units shipped Total shipping expense
High level of activity ( June ) 8 2700
(-) Low level of activity ( July ) 2 1200
Difference 6 1500
Variable shipping expense = Difference in total shipping expense / Difference in units shipped = 1500 / 6 250 per unit
Now let us calculate the fixed shipping expense from the June data
Total shipping expense = ( Variable shipping expense per unit * Units shipped ) + Fixed shipping expense
2700 = ( 250 * 8 ) + Fixed shipping expense
2700 = 2000 + Fixed shipping expense
Fixed shipping expense = 2700 - 2000 700 per month

Note: If 700 answer for fixed shipping expense is correct then variable shipping expense must be 250 per unit.

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