Kilroy Company determined that the best driver for its material-moving activity is miles traveled. They also discovered
Question:
Kilroy Company determined that the best driver for its material-moving activity is “miles traveled.” They also discovered that the cost of fuel for forklifts doubled as the miles traveled doubled. The fuel cost for 10,000 miles was $11,500 and for 20,000 miles was $23,000.
Required:
1. Prepare a table that shows the total cost of fuel and unit cost for miles traveled ranging from 0 to 80,000 miles, using increments of 20,000 miles. 2. How would you describe the behavior of the material-moving cost?lop5
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