1A4I OVER THE PAST SEVERAL YEARS, MCFADDEN INDUSTRIES HAS EXPERIENCED...

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.