Faulk Company has noticed considerable fluctuation in its shipping expense from month to month, as shown by the data below:
Total
Units Shipping
Month Shipped Expense
January........... 40............... $210
February.......... 77............... 364
March.............. 52............... 260
April.................. 20............... 180
May.................. 36............... 226
June................. 60............... 315
July.................. 80............... 360
a) Using the high-low method, determine the cost formula for shipping expense.
b) If Faulk ships 74 units during a month, what would you expect total shipping expense to be?