Question
High-Low Cost Estimation Assume the local DHL delivery service hub has the following information available about fleet miles and operating costs: Year Miles Operating Costs
High-Low Cost Estimation Assume the local DHL delivery service hub has the following information available about fleet miles and operating costs:
| Year | Miles | Operating Costs |
|---|---|---|
| 2006 | 554,000 | $177,000 |
| 2007 | 674,000 | 207,000 |
Use the high-low method to develop a cost-estimating equation for total annual operating costs. (Let X = annual fleet miles.)
Total annual costs = Answer + Answer * X
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Fundamentals of Multinational Finance
Authors: Michael H. Moffett, Arthur I. Stonehill, David K. Eiteman
5th edition
205989756, 978-0205989751
