• CityTransit Bus Service is examining its fuel and maintenance costs related to miles driven.
• Data Collected:
  • Low Traffic Month: Total Costs: $90,000, Miles Driven: 30,000
  • High Traffic Month: Total Costs: $150,000, Miles Driven: 50,000
• Tasks:
  • Determine the variable cost per mile and fixed costs using the High-Low Method.
  • Develop a cost equation.
  • Predict the total costs for 60,000 miles driven.
  • Discuss strategies for managing costs with fluctuating traffic volumes.