Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hoi Chong Transport, Limited, operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven 1 7 7

Hoi Chong Transport, Limited, operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven 177,000 kilometers during a year, the average operating cost is 12.3 cents per kilometer. If a truck is driven only 118,000 kilometers during a year, the average operating cost increases to 15.5 cents per kilometer.
Required:
Using the high-low method, estimate the variable operating cost per kilometer and the annual fixed operating cost associated with the fleet of trucks.
Express the variable and fixed costs in the form Y=a+bx.
If a truck were driven 147,000 kilometers during a year, what total operating cost would you expect to be incurred?
Complete this question by entering your answers in the tabs below.
Required 2
Required 3
Using the high-low method, estimate the variable operating cost per kilometer and the annual fixed operating cost associated with the fleet of truck (Do not round your intermediate calculations. Round the Variable cost per kilometer to 3 decimal places.)
\table[[Variable cost,per kilometer],[Fixed cost,per year]]
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting

Authors: John Hoggett, John Medlin, Lew Edwards, Matthew Tilling, Evelyn Hoggett Hogg

6th Edition

1742466354, 978-1742466354

More Books

Students also viewed these Accounting questions

Question

=+What is the EVPI?

Answered: 1 week ago