Hoi Chong Transport, Limited, operates a fleet of delivery trucks in Singapore. The company has...
60.1K
Verified Solution
Link Copied!
Question
Accounting
Hoi Chong Transport, Limited, operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven 156,000 kilometers during a year, the average operating cost is 12.6 cents per kilometer. If a truck is driven only 104,000 kilometers during a year, the average operating cost increases to 15.6 cents per kilometer. Required: 1. Using the high-low method, estimate the variable operating cost per kilometer and the annual fixed operating cost associated with the fleet of trucks. 2. Express the variable and fixed costs in the form Y = a + bX. 3. If a truck were driven 130,000 kilometers during a year, what total operating cost would you expect to be incurred?
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
