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QUESTION

Delivery Dudes Services has the collected the following information about operating expenditures for its delivery trucks for the past five years:

Delivery Dudes Services has the collected the following information about operating expenditures for its delivery trucks for the past five years:

Year

Miles

Operating Costs

2013

45,000

$185,000

2014

60,000

$200,000

2015

40,000

$170,000

2016

55,000

$195,000

2017

75,000

$215,150

Using the high-low method, what is the estimated fixed cost for 2018  ?

$123,200

$152,200

$134,600

$118,400

Miles Operating cost High 75,000 $215,150 Low 40,000 170,000 difference 35,000 45,150 Variable cost per unit = 45,150/35,000= $1.29 per unitTotal variable cost at 75,000 miles = 75,000*1.29 =...
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