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High-low method. The town of quincy reported the following annual cost data for maintenance work performed on its fleet of trucks: Reporting period (year) year
High-low method. The town of quincy reported the following annual cost data for maintenance work performed on its fleet of trucks: Reporting period (year) year 1, 2, 3, 4, 5 and year 6 Total costs $750,000 850,000 1100,000 1,150,000 1,250,000 1,550,000 Level of activity (miles driven) 225,000 240,000 430,000 454,000 560,000 710,000 Required: a. Use the four steps of the High-low method to estimate the total fixed cost per year and the variable cost per mile. State your results in the cost equation for Y= f + vX by filling in the dollar amounts for f and v. b. What would the estimated costs be if the trucks drove 600,000 miles in year 7
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