Johnson Trucking Company wants to determine a fuel surcharge to add to its customers' bills...
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Johnson Trucking Company wants to determine a fuel surcharge to add to its customers' bills based on the number of miles driven to each area. It wants to separate the fixed and variable portion of the truck's operating costs so it has a better idea of how distance affects these costs. Johnson Trucking Company has the following data available Month January February March April May June Miles driven 16,200 17,000 18,400 16,500 17,400 15,400 Total operating costs $22,650 $23.250 $28,950 $22.875 $23.550 $21.650 The variable cost per mile using the high-low method is A. $1.88 B. $2.43 O C. $1.57 OD. $1.41 Maintenance costs at Seaside Manufacturing over the past six months are listed in the following table. Month January February March April May June Maintenance cost $13,600 $14,720 $13,000 $14,480 $ 16,000 $13,200 Machine hours 15,500 16,900 14,000 16,600 18,000 15,000 Using the high-low method, what would the monthly fixed maintenance cost be? (Round any intermediary calculations to the nearest cent.) O A. $2,500 OB. $3,000 OC. $13,500 OD. $29,000
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