Chapter 6.A, Problem 3E

To determine

High-low Method: It is measure of separating the fixed cost and variable cost in the mixed operating cost of the company.

1. The estimated variable operating cost per kilometer and the annual fixed operating cost.

2. Express the variable and fixed cost in the form of $Y=a+bX$$$

3. If the truck were driven 76,000 kilometers during a year, what total operating cost would you expect to incur.