Cost Behavior High Low Method

A local delivery company, Quick Delivery, has the following information:

Month	Miles Driven	Truck Operating Costs
January	4,000	$9,400
February	4,400	$9,640
March	5,400	$10,240
April	6,300	$10,780
May	7,700	$11,620
June	8,600	$12,160
July	9,200	$12,250
August	10,400	$13,240
September	9,300	$12,580
October	8,200	$11,920
November	6,500	$10,900
December	8,000	$11,800

1. Using the High Low method, please determine the cost equation to predict the trucks

operating costs based on miles driven. Show your work for full or for partial credit.

B) If they were to drive 7,000 miles, then what would be their predicted truck operating

costs under the high low method? Show your work for full or for partial credit.