Question: Could someone answer for me this question. Thank you in advance. Required: Using the high-low method, estimate the variable and fixed cost elements of the
Required: Using the high-low method, estimate the variable and fixed cost elements of the annual cost of the truck operation. 2. Express the variable and fixed costs in the form Y = a + bx. 3. If a truck were driven 80,000 kilometers during a year, what total cost would you expect to be incurred? EXERCISE 3-8 High-Low Method; Predicting Cost LOL, LO3) The Lakeshore Hotel's guest-days of occupancy and custodial supplies expense over the last seven months Were: Month March April ..... May ...... Guest Days of Occupancy 4,000 6,500 8,000 10,500 12,000 9,000 7,500 Custodial Supplies Expense $7,500 $8,250 $10,500 $12,000 $13,500 $10,750 $9,750 June. July August .............. September . ... Guest-days is a measure of the overall activity at the hotel. For example, a guest who stays at the hotel for three days is counted as three guest-days. Required: 1. Using the high-low method, estimate a cost formula for custodial supplies expense. 2. Using the cost formula you derived above, what amount of custodial supplies ex i derived above, what amount of custodial supplies expense would you expect to be incurred at an occupancy level of 11.000 guest-days
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