58. CSO: 1A4a LOS: 1A4i
Over the past several years, McFadden Industries has experienced the following
regarding the company’s shipping expenses.
Fixed costs $16,000
Average shipment 15 pounds
Cost per pound $.50
Shown below are McFadden’s budget data for the coming year.
Number of units shipped 8,000
Number of sales orders 800
Number of shipments 800
Total sales $1,200,000
Total pounds shipped 9,600
McFadden’s expected shipping costs for the coming year are
a. $4,800.
b. $16,000.
c. $20,000.
d. $20,800.
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