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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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