Mitchum Fleet, Inc. has incurred the following maintenance costs on its fleet of taxicabs during the past 6 months. Use the high/low cost estimation method to determine the expected cost if 12,000 miles are logged in one month. Month Total Miles Logged Maintenance Cost + 1 13,255 $26,000 2 8,650 $17,000 3 12,150 $21,400 4 18,200 $31,600 5 9,120 $19,400 6 12,750 $24,000 A.) $22,121 B.) $24,415 C.) $31,600 D.) $45,300
Mitchum Fleet, Inc. has incurred the following maintenance costs on its fleet of taxicabs during the past 6 months. Use the high/low cost estimation method to determine the expected cost if 12,000 miles are logged in one month. Month Total Miles Logged Maintenance Cost + 1 13,255 $26,000 2 8,650 $17,000 3 12,150 $21,400 4 18,200 $31,600 5 9,120 $19,400 6 12,750 $24,000 A.) $22,121 B.) $24,415 C.) $31,600 D.) $45,300
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Mitchum Fleet, Inc. has incurred the following maintenance costs on its fleet of taxicabs during
the past 6 months. Use the high/low cost estimation method to determine the expected cost if
12,000 miles are logged in one month.
Month Total Miles Logged Maintenance Cost
+
1
13,255
$26,000
2
8,650
$17,000
3
12,150
$21,400
4
18,200
$31,600
5
9,120
$19,400
6
12,750
$24,000
A.) $22,121
B.) $24,415
C.) $31,600
D.) $45,300
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