Task 2 [covers learning outcomes 2 and all assessment criteria] 1. Prepare a cost report for your selected organization and analyze the report. 2. How potential improvements can be suggested by means of performance indicators? 3. Explain the concept of value for money and suggest some methods of cost reduction, enhancing value and quality. 4. Z Company, a wholesaler of large, custom-built air conditioning units for commercial buildings, has noticed considerable fluctuation in its shipping expense from month to month, as shown below: Month Units shipped Total shipping expense January 4 $ 2,200 February 7 $ 3,100 March 5 $ 2,600 April 2 $ 1,500 May 3 $ 2,200 June 6 $ 3,000 July 10 $ 4,200 Required: 1. Using the high-low method, estimate a cost formula for shipping expenses 2. The president has no confidence in the high-low method and would like you to check out your results using a scatter graph. Do the following: Prepare a scatter graph, using the data above. Using the graph, estimate the approximate variable cost per unit shipped and the approximate fixed cost per month with the quick and dirty method.
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