Archer Company is a wholesaler of custom-built air-conditioning units for commercial buildings. It gathered the following monthly data relating to units shipped and total shipping expense: Month Units Shipped Total Shipping Expense
January 3 $1,800
February 6 $2,300
March 4 $1,700
April 5 $2,000
May 7 $2,300
June 8 $2,700

Required:
Using the high-low method, estimate the cost formula for shipping expense.

Baker industries’s net income is $24,000, its interest expense is $5,000, and its tax rate is 40%. its notes payable equals $27,000, long-term debt equals $75,000, and common equity equals $250,000. the firm finances with only debt and common equity, so it has no preferred stock. what are the firm’s roe and roic?

What do you think: would it be more profitable to own 200 shares of penny’s pickles or 1 share of exxon? why do you think that?

The management of a supermarket wants to adopt a new promotional policy of giving a free gift to every customer who spends > a certain amount per visit at this supermarket. the expectation of the management is that after this promotional policy is advertised, the expenditures for all customers at this supermarket will be normally distributed with a mean of $95 and a standard deviation of $20. if the management wants to give free gifts to at most 10% of the customers, what should the amount be above which a customer would receive a free gift?