cost & managerial accounting

Project Description:

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 168,000 miles during a year, the average operating cost is 13.2 cents per mile. if a truck is driven only 112,000 miles during a year, the average operating cost increases to 16.7 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 = $ + $ x

3.

if a truck were driven 140,000 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 $
Skills Required:
Project Stats:

Price Type: Fixed

Project Budget: $0 to $10
Completed
Total Proposals: 3
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