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Deliveries Are Us Company wants to determine a fuel surcharge to add to its customers' bills based on the number of miles driven to
Deliveries Are Us Company wants to determine a fuel surcharge to add to its customers' bills based on the number of miles driven to each area. It wants to separate the fixed and variable portion of the company's operating costs so it has a better idea of how distance affects these costs. The Company has the following data available. Month January February March April May June Miles driven 16,200 17,000 20,000 16,500 17,400 15,000 Total operating costs $22,650 $23,250 $24,000 $22,875 $23,550 $22,000 Using the high-low method, the monthly operating costs if the Company drives 23,000 miles in a month will be (Round intermediary calculations to the nearest cent. Use the "high" data month to calculate your final answer. Do not use the "low" month, as it will result in an approximation of the cost.) A. $39,000 B. $16,000 C. $25,200 OD. $15,600
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