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Hoi Chong Transport, Limited, operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven 9 9 ,
Hoi Chong Transport, Limited, operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven kilometers during a year, the average operating cost is cents per kilometer. If a truck is driven only kilometers during a year, the average operating cost increases to cents per kilometer.
Required:
Using the highlow 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
If a truck were driven kilometers during a year, what total operating cost would you expect to be incurred?
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Using the highlow method, estimate the variable operating cost per kilometer and the annual fixed operating cost associated with the fleet of trucks. Do not round your intermediate calculations. Round the Variable cost per kilometer to decimal places.
tableVariable cost$per kilometerFixed cost$per year
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