Expected Shipping Expense Calculation

What is the expected shipping expense for the Washington company if they ship 20,000 liters based on the provided data?

Expected shipping expense would be closest to N$46,000.

Calculation of Expected Shipping Expense:

To find the expected shipping expense for shipping 20,000 liters, we can use the concept of unit rates. First, we need to determine the cost per liter for each shipment:

For the shipment of 22,000 liters with an expense of N$50,000:
Cost per liter = N$50,000 / 22,000 liters = N$2.27 per liter

For the shipment of 18,000 liters with an expense of N$42,000:
Cost per liter = N$42,000 / 18,000 liters = N$2.33 per liter

Next, we can find the average cost per liter by taking the average of the two rates:
Average cost per liter = (N$2.27 + N$2.33) / 2 = N$2.30 per liter

Finally, we can calculate the expected shipping expense for 20,000 liters by multiplying the average cost per liter by the desired volume:
Expected shipping expense = N$2.30 per liter * 20,000 liters = N$46,000
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