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KonstantinChe [14]
3 years ago
5

Children's World Toy Shop is an on-line toy store specializing in hand made stuffed animals. Children's World sold 4,000 Donny t

he Dragon stuffed toys during April and 6,000 during May. Shipping costs for the two months were $12,000 and $16,800 respectively. Using these two months' data, the shipping cost function is best estimated as
A. ($2 x number of toys sold) + $70,000.
B. ($3 x number of toys sold) + $2,880.
C. ($2.40 x number of toys sold) + $2,400.
D. ($0.50 x number of toys sold) + $10,000.
Business
1 answer:
Angelina_Jolie [31]3 years ago
5 0

Answer:

C. ($2.40 x number of toys sold) + $2,400.

Explanation:

\left[\begin{array}{ccc}High&6000&16800\\Low&4000&12000\\Diference&2000&4800\\\end{array}\right]

We subtract high from low. We obtain that 2,000 toys shipped generate 4,800 dollars of cost therefore: 4,800 / 2,000 = 2.4 variable cost

Then, we solve for fixed cost:

Total Cost                           $ 16,800

Variable: 6,000 units x $2.4 =<u> $ (14,400)   </u>

Fixed Cost                            $   2,400

This makes option C the correct formula for shipping cost.

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