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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 drive 9 9 ,
Hoi Chong Transport, Limited, operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is drive 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 wi 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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