If a truck were driven 135000 miles during a year what

Assignment Help Accounting Basics

Reference no: EM13580861

Speedy Parcel Service operates a fleet of delivery trucks in a large metropolitan area. A careful study by the company's cost analyst has determined that if a truck is driven 162,000 miles during a year, the average operating cost is 13.2 cents per mile. If a truck is driven only 108,000 miles during a year, the average operating cost increases to 16.6 cents per mile.

Required:
1.	Using the high-low method, estimate the variable and fixed cost elements of the annual cost of truck operation. (Round the "Variable cost per mile" to 3 decimal places and the "Fixed cost" to the nearest dollar amount.)


Variable cost	$	per mile
Fixed cost	$	per year

2.	Express the variable and fixed costs in the form Y = a + bX. (Round the "Variable cost per mile" to 3 decimal places and the "Fixed cost" to the nearest dollar amount.)

Y =

3.	If a truck were driven 135,000 miles during a year, what total cost would you expect to be incurred?(Round the "Variable cost per mile" to 3 decimal places. Round your intermediate and final answers to the nearest dollar amount.)

Total annual cost

Reference no: EM13580861

Questions Cloud

From institution- and resource-based views identify the : from institution- and resource-based views identify the obstacles confronting mnes from emerging economies interested

Some years ago general motors installed industrial robots : some years ago general motors installed industrial robots worth billions of dollars in its automobile assembly plants

A parallel plate capacitor with plate separation d is : a parallel plate capacitor with plate separation d is connected to a battery. the capacitor is fully charged to q

Lopez company has been approached by a new customer to : lopez company has been approached by a new customer to provide 2000 units of its regular product at a special price of

If a truck were driven 135000 miles during a year what : speedy parcel service operates a fleet of delivery trucks in a large metropolitan area. a careful study by the companys

Don wallss gross earnings for the week were 1769 his : don wallss gross earnings for the week were 1769 his federal income tax withholding was 341.88 and his fica total was

Declared a 2 stock dividend on common stock and a 180 cash : declared a 2 stock dividend on common stock and a 1.80 cash dividend per share on preferred stock. on the date of

What total overhead cost would you expect to be incurred at : golden companys total overhead cost at various levels of activity are presented below monthmachine-hourstotal

Here are the 2011 revenues for the wendover group practice : here are the 2011 revenues for the wendover group practice association for four different budgets in thousands of

User Account

All Pages