Fixed Costs (f) = $378,500

Variable Cost per Mile (v) = $1.65 per mile

Estimated costs if the trucks drove 500,000 miles in Year 7

Y= $378,500+$1.65X

Estimated Costs = $1,203,500

PLEASE DRAW A SCATTERGRAPH FOR THE ABOVE EQUATION, BELOW ARE THE DATA

Reporting Period (Year)Total CostsLevel of Activity (Miles Driven) Year1$750,000Year2Year3Year4Year5Year6225,000850,0001,100,0001,150,0001,250,0001,550,000240,000430,000454,000560,000710,000