Question: Using the high - low method, estimate the variable operating cost per kilometer and the annual fixed operating cost associated with the fleet of trucks.

Using the high-low method, estimate the variable operating cost per kilometer and the annual fixed operating cost associated with the fleet of trucks.
Express the variable and fixed costs in the form Y = a + bX.
If a truck were driven 80,000 kilometers during a year, what total operating cost would you expect to be incurred?

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