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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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