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What the intercept of the company''s total cost graph

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Reference no: EM133147751

Question - Donaldson Trucking uses cargo miles driven (CMD) as an activity base. The company reports the following breakdown of cost behaviors:

Fixed Costs per Year

License fees = $12,000

Insurance = $28,000

Depreciation = $160,000

Office & Clerical = $190,000

Variable Costs per CMD

Driver wages = $0.40/CMD

Fuel = $1.25/CMD

Semi-variable Costs/CMD

Maintenance & Service Costs = $10,000 + $0.35/CMD

Required -

1. What the intercept of the company's total cost graph?

2. What the slope of the company's total cost line?

3. What the company's estimated total cost at 1 million CMD?

Reference no: EM133147751

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