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Donaldson Trucking uses cargo miles driven (CMD) as an activity base. The company reports the following breakdown of cost behaviors: Fixed Costs per Year License
Donaldson Trucking uses cargo miles driven (CMD) as an activity base. The company reports the following breakdown of cost behaviors:
Fixed Costs per Year
License fees = $12,000
Insurance = $28,000
Depreciation = $160,000
Office & Clerical = $190,000
Variable Costs per CMD
Driver wages = $0.40/CMD
Fuel = $1.25/CMD
Semivariable Costs/CMD
Maintenance & Service Costs = $10,000 + $0.35/CMD
1. The intercept of the company's total cost graph is $.
2. The slope of the company's total cost line is $.
3. The company's estimated total cost at 1 million CMD is
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