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Cost-estimating equation for total annual operating costs

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Assume the local DHL delivery service hub has the following information available about fleet miles and operating costs:

High-Low Cost Estimation

Assume the local DHL delivery service hub has the following information available about fleet miles and operating costs:

Year Miles Operating Costs

2006 556,000 $177,000

2007 696,000 212,000

Use the high-low method to develop a cost-estimating equation for total annual operating costs. (Let X = annual fleet miles.).

Reference no: EM13944771

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