For the last eight months of 2009 jo company incurred the

Reference no: EM13589929

For the last eight months of 2009, Jo Company incurred the following activity levels and Shipping Department Costs:

Month                  Number of Shipments                   Shipping Department Costs

May                       1,800                                                   $14,700

June                      1,900                                                   15,200

July                        1,700                                                   13,700

August                  1,600                                                   14,000

September            1,500                                                   14,300

October               1,300                                                   13,100

November              1,100                                                   12,800

December               1,500                                                   14,600

(a)  What is the variable cost per shipment ? Why ?

(b)  What is the fixed costs per month ?

(c)  What linear formula may be used to estimate shipping costs ?

(d)  What is the estimated shipping costs in a month with 2,000 shipments ? Why ?

Reference no: EM13589929

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