Question: Using High-Low to Calculate Predicted Total Variable Cost and Total Cost for a Time Period that Differs from the Data Period Speedy Pete's is

Using High-Low to Calculate Predicted Total Variable Cost and Total Cost for a Time Period that Differs from the Data Period Speedy Pete's is a small start-up company that delivers high-end coffee drinks to large metropolitan office buildings via a cutting-edge motorized coffee cart to compete with other premium coffee shops. Data for the past 8 months were collected as follows: Month Delivery Cost Number of Deliveries May $63,450 1,800 June 67,120 2,010 July 66,990 2,175 August 68,020 2,200 September 73,400 2,550 October 72,850 2,630 November 75,450 2,800 73,300 2,725 December Assume that this information was used to construct the following formula for monthly delivery cost. Total Delivery Cost = $41,850 + ($12.00 x Number of Deliveries) Required: Assume that 3,000 deliveries are budgeted each month for the coming year. Use the total delivery cost formula to make the following calculations: 1. Calculate total variable delivery cost for the coming year. 2. Calculate total fixed delivery cost for the year. $ 3. Calculate total delivery cost for the year.

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