Kwame, rosalinda, and sven work at security first trust and national reserve, a medium-sized bank with 240 branches in eight states. kwame works as a teller. rosalinda works as one of five regional supervisors, each of whom is expected to supervise a team of tellers. kwame recently received instructions from his supervisor that all tellers will be evaluated on the number of people they assist at their window per day. serving more customers means higher performance effectiveness. however, kwame is also expected to follow the bank's number-one goal of customer satisfaction. rosalinda is facing her own challenges. two of the regional supervisors suddenly left the bank for other opportunities, resulting in a significant increase in work responsibility and time pressure for rosalinda and the remaining two supervisors. just two days before the two regional supervisors quit, the bank hired sven as a supervisor trainee. with the bank suddenly short-handed, sven was asked to take up all the responsibilities of a regional supervisor. he has been given very few instructions or guidelines about how things are supposed to be done. instead, the bank expects him to learn on the job. kwame, unable to meet both types of expectations associated with his role, is facing

Milden company has an exclusive franchise to purchase a product from the manufacturer and distribute it on the retail level. as an aid in planning, the company has decided to start using a contribution format income statement. to have data to prepare such a statement, the company has analyzed its expenses and has developed the following cost formulas: cost cost formula cost of good sold $35 per unit sold advertising expense $210,000 per quarter sales commissions 6% of sales shipping expense ? administrative salaries $145,000 per quarter insurance expense $9,000 per quarter depreciation expense $76,000 per quarter management has concluded that shipping expense is a mixed cost, containing both variable and fixed cost elements. units sold and the related shipping expense over the last eight quarters follow: quarter units sold shipping expense year 1: first 10,000 $ 119,000 second 16,000 $ 175,000 third 18,000 $ 190,000 fourth 15,000 $ 164,000 year 2: first 11,000 $ 130,000 second 17,000 $ 185,000 third 20,000 $ 210,000 fourth 13,000 $ 147,000 milden company’s president would like a cost formula derived for shipping expense so that a budgeted contribution format income statement can be prepared for the next quarter. required: 1. using the high-low method, estimate a cost formula for shipping expe