Please help question No. 19

Topic: Cost Behavior Patterns LO: 1 15. A cost that is constant within a relevant range but differs outside the relevant range of activity is best classified as what type of cost? A) Variable cost B) Fixed cost C) Mixed cost D) Step cost Topic: Cost Behavior Patterns LO: 1 16. Which of the following mathematical expressions best describes a mixed cost? A) Y b)X B) Y a D) Y=a The following information applies to questions 17-19. Really Fast Delivery Services its delivery truck fleet for the past five years: has the collected the following information about operating expenditures for Year 2013 2014 2015 2016 2017 Miles 55,000 70,000 (-50,000 $195,000 $210,000 $180,000 $205,000 $225,150 ,( 85,000 Topic: High-Low Cost Estimation LO: 3 17. Using the high-low method, what is the cost estimate for variable costs for 20182 A) $1.29 B) $2.00 C) $1.60 D) $1.50 Topic: High-Low Cost Estimation LO: 3 Using the high-low method, what is the cost estimate for fixed costs for 2018? A) $100,000 B) $ 70,000 C) $115,500 D) $109,650 18. atbv Answer: C Rationale: $225150-(85,000 x $1.29) = $115,500 (using high observation) $ 1 80,000-(50,000 x $1.29 = $115,500 (using low observation) Topic: High-Low Cost Estimation LO: 3 19. What is the best estimate of total operating expenses for 2018 using the high-low method based on total expected miles of 60,000? A) $192,900 B) $195,000 C) $196,000 D) $201,000