Question: Using High - Low to Calculate Predicted Total Variable Cost and Total Cost for Budgeted Output Speedy Pete's is a small start - up company
Using HighLow to Calculate Predicted Total Variable Cost and Total Cost for Budgeted Output
Speedy Pete's is a small startup company that delivers highend coffee drinks to large metropolitan office buildings via a cuttingedge motorized coffee cart to compete with other premium coffee shops. Data for the past months were collected as follows:
tableMonthDelivery Cost,Number of DeliveriesMay$JuneJulyAugustSeptemberOctoberNovemberDecember
Assume that this information was used to construct the following formula for monthly delivery cost.
Total Delivery Cost Number of Deliveries
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