Question
High-Low Cost Estimation Assume the local DHL delivery service hub has the following information available about fleet miles and operating costs: 2010 555,000 $177,000 2011
High-Low Cost Estimation Assume the local DHL delivery service hub has the following information available about fleet miles and operating costs:
| 2010 | 555,000 | $177,000 |
| 2011 | 671,000 | 206,000 |
Use the high-low method to develop a cost-estimating equation for total annual operating costs. (Let X = annual fleet miles.)
Total annual costs =
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Fundamental Financial Accounting Concepts
Authors: Thomas Edmonds
7th Edition
73527122, 978-0073527123
