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The Heartland Delivery Service has the following information about its truck fleet miles and operating costs:
Year Miles Operating Costs
2015 125,000 $80,000
2016 150,000 $87,500
2017 175,000 $105,000
Question 1: What is the best estimate of fixed costs for fleet operating expenses in 2017 using the high-low method?
Option 1: $50,000
Option 2: $17,000
Option 3: $17,500
Option 4: $25,000
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