Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. we deliver operates a fiect of delivery trucks in

We Deliver operates a fiect of delivery trucks in Halifax. Analysis shows that if a...

80.2K

Verified Solution

Question

Accounting

image
We Deliver operates a fiect of delivery trucks in Halifax. Analysis shows that if a truck is driven 152,000 kilometres during a year, the average operating cost is 12.2 cents ($0.122 ) per kilometre. If a truck is driven only 94,000 kilometres during a year, the average operating cost increases to 14.2 cents ($0.142) per kilometre. Required: 1. Using the high-low method, estimate the variable and fixed cost elements of the annual cost of truck operation. (Do not round your intermediate calculations. Round the "Varlable cost per kilometer" to 3 decimal places.) 2. Express the variable and floed costs in the form Y=a+bX. (Do not round your intermediate calculations. Round the "Variable cost per kllometer" to 3 decimal places.) 3. If a truck were driven 151,300 kilometres during a year, what total cost would you expect to be incurred? (Do not round Intermediate calculations. Round the "Varlable cost per kilometer" to 3 decimal places.)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students