Working:-
Variable rate for Shipping expense = Change in cost / Change in unit
Variable rate for Shipping expense = $100,200 - $95,000/ 8,500 - 8,000
Variable rate for Shipping expense = $10.4 per unit
Fixed Cost = $100,200 - (8,500*$10.4) = $11,800
Variable rate for Salaries and commissions = $152,600 - $145,000 / 8,500 - 8,000
Variable rate for Salaries and commissions = $15.2 per unit
Fixed cost = $152,600 - ( 8,500*$15.2) = $23,400
I hope you understand the answer. If you have any query feel free to ask in comment section. Thanks
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