Current Attempt in Progress

Robert was driving back to the office from his off$-$site construction job on Friday. He had put in a long week and just wanted to go home. But a text from John back in the office reminded him to enter his weekly mileage$-$the accountants needed to finish the company's total fleet expenses for its quarterly income statement$-$and the performance evaluation meeting was on Monday. Robert was frustrated that his weekend was now going to be delayed because of this data entry business. He wondered why John couldn't just use the fuel cost for the income statement.

In the end, Robert complied with John's request and input his mileage information. Robert's mileage was added to the other vehicles' mileage information, with the quarterly totals listed below. Total fleet expenses on the income statement are a combination of the five costs shown here.

$($a$)$

Correct Answer

Your answer is correct.

The accountants planned to use the account analysis method to explain and predict the Fleet Expenses. Based on the information provided, which of the five costs are fixed? Which costs are variable based on miles driven? Which costs are mixed?

Vehicle Insurance

Registration Fees

Fuel

Depreciation $($Shed $\backslash$& Vehicles$)$

Vehicle Maintenance $($b$)$

Your answer is correct.

For any mixed costs, use the high$-$low method to separate the fixed and variable components, using miles driven as the cost driver. $($Round variable cost per unit to $3$ decimal places, eg$.15\mathrm{.}256.)$

$\backslash [$

Y$=\backslash$$

$\backslash ]$

$\backslash [$

x$+\backslash$$

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eTextbook and Media

$($c$)$

Place all of this Fleet Expense information into one final cost function where Y is Total Fleet Expenses, and X is number of miles driven. Write out the formula in $\backslash (\backslash$mathrm$\{$Y$\}=\backslash$mathrm$\{$m$\}(\backslash$mathrm$\{$X$\})+\backslash$mathrm$\{$b$\}\backslash )$ format. $($Round variable cost per unit to $3$ decimal places, e$.$g$.15\mathrm{.}256.)$

$\backslash [$

Y$=\backslash$$

$\backslash ]$

$\backslash [$

x$+\backslash$$

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