Question: QUESTION #1 (a) [4 MARKS] Unified Parcel, Inc., operates a local parcel delivery service. The company keeps detailed records relating to operating costs of trucks,
QUESTION #1 (a) [4 MARKS] Unified Parcel, Inc., operates a local parcel delivery service. The company keeps detailed records relating to operating costs of trucks, and has found that if a truck is driven 110,000 miles per year the operating cost is 7.5 cents per mile. This cost increases to 8.75 cents per mile if a truck is driven 60,000 miles per year. Required: Determine the mixed cost formula for truck operating costs using the high-low method. Cost Equation (Final Answer) QUESTION #1 [b] [2 MARK] Use your answer in part (a) to determine the total operating cost if a truck is driven 257,600 miles per year. Total Operating Cost (Final Answer) QUESTION #1 1 (c) [2 MARK] Use your answer in part (a) to determine the number of miles a truck was driven if the total operating cost for the year was $16,770. Round your answer to the nearest whole number. Total Miles Driven (Final Amswer)
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