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January Deliveries Are Us Company wants to determine a fuel surcharge to add to its customers' bills based on the number of miles driven to
January Deliveries Are Us Company wants to determine a fuel surcharge to add to its customers' bills based on the number of miles driven to each area. It wants to separate the fixed and variable portion of the company's operating costs so it has a better idea of how distance affects these costs. The Company has the following data available. Month Miles driven Total operating costs 16,200 $22,650 February 17,000 $23,250 March 18.700 $24,850 April 16,500 $22,875 May 17,400 $23,550 June 14,900 $21,750 The variable cost per mile using the high-low method is O A. $1.67 OB. $0.82 O C. $1.33 OD. $1.46
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