Answer:
Variable shipping expense per unit = $350
Fixed shipping expense = $1,050
Explanation:
Variable shipping expense per unit = [Highest total cost - Lowest total cost]/[Highest level - Lowest level]
Variable shipping expense per unit = (3,500 - 1,400) / (7-1)
Variable shipping expense per unit = $350
Fixed shipping expense = Highest total cost - [(Variable shipping expense per unit)(Highest level)]
Fixed shipping expense = 3,500 - [(7)(350)]
Fixed shipping expense = $1,050.