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blue bird operate a fleet of delivery trucks in singapore. the company has determi ned that if a truck is driven 150.000 kilometers during a

blue bird operate a fleet of delivery trucks in singapore. the company has determi ned that if a truck is driven 150.000 kilometers during a year, the average operating cost is 11,4 cents per kilometer. If a truck is driven only 70.000 kilometers during a year, the average operating cost increase to 13.4 cents per kilometers.

Required :

  1. Estimates the variable and fixed cost
  2. Determine its equation
  3. If a truck is driven 80.000 kilometers during a year, what total cost would you expect to be incurred?

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