Question

Required information Exercise 6A-4 High-Low Method; Scattergraph Analysis (LO6-10] (The following information applies to the questions displayed below.] Archer Company is a wholesaler of custom-built air-conditioning units for commercial buildings. It gathered the following monthly data relating to units shipped and total shipping expense: Month January February March April Units Shipped 4 7 5 6 8 9 1 Total Shipping Expense $ 1,800 $ 2,300 $ 1,700 $ 2,000 $ 2,300 $ 3,400 $ 1,200 May June July

4. What factors, other than the number of units shipped, are likely to affect the company’s shipping expense? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)

Answer 1

Factors that likely to impact company"s Shipping Bill is as fiollows:

1.Weight of units to be shiped : if Weight is low than we can hire small vehicle and vice-e-versa.

2. Distance traveled : Distance travel decide the cost of the shipping, if distance is small therefore the bill can be lower and vice-e-versa.

3.Expess Shipping to Meet Deadline : It can cost more because you have to fulfill in time, therefore the shipping company charge more, and further the contract shipping company is busy and you have to hire from outside so it can cost high.