Solution-Compute fixed and variable portions of the

Compute fixed and variable portions of the maintenance costs

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Reference no: EM132744022

Question - ABC Company maintains a heavy schedule of maintenance for its fleet of trucks. It regularly checks its cost behavior every six months. The following information from the company is presented below:

Month	Hours Maintenance	Cost
January	53,000	$600,000
February	55,000	700,000
March	47,000	550,000
April	51,000	650,000
May	45,000	500,000
June	49,000	610,000

Required -

A. Using High-Low method, compute the fixed and variable portions of the maintenance costs.

B. Provide the predictive equation derived from the data above.

C. Using the predictive equation, predict what the total cost would be at 60,000 hours of maintenance.

Reference no: EM132744022

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Compute fixed and variable portions of the maintenance costs

Reference no: EM132744022

Reference no: EM132744022

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