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Johnson Trucking Company wants to determine a fuel surcharge to add to its customers' bills based on the number of miles driven to each area.
Johnson Trucking 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 truck's operating costs so it has a better idea of how distance affects these costs. Johnson Trucking Company has the folowing data available Month January February March April May June Miles driven 16,200 17,000 18,200 16.500 17,400 15,400 Total operating costs $22.650 $23,250 $26,750 $22.875 $23.550 $21.750 The variable cost per mile using the high-low method is O A $1.79 O B. $1.41 OC. $1.47 OD $1.74
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