Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please answer all 3 questions. thank you Hoi Chong Transport, Limited, operates a fleet of delivery trucks in Singapore. The company knows if a truck

please answer all 3 questions. thank you
image text in transcribed
Hoi Chong Transport, Limited, operates a fleet of delivery trucks in Singapore. The company knows if a truck is driven 162,000 kilometers during a year, the average operating cost is 13.2 cents per kilometer if a truck is driven only 108,000 kilometers during a yeat the average operating cost increases to 16.6 cents per kilometer. Required: 1. Using the high-low method, estimate the variable operating cost per kilometer and the annual fixed operating cost associated with the fleet of trucks 2. Express the variable and fixed costs in the form Y=a+bX 3. If a truck were driven 135,000 kllometers during a year, what total operating cost would you expect to be incurred? Complete this question by entering your answers in the tabs below. Using the highlow method, estimate the variable operating cost per kilometer and the annual fixed operating cost associated with the fleet of trucks. Note: Do not round your intermediate calculations. Plound the Variable cost per kilometer to 3 decimal places

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_2

Step: 3

blur-text-image_3

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

Certified Internal Auditor CIA Practice Of Internal Auditing Part 2- 2019

Authors: Muhammad Zain

1st Edition

1093798459, 978-1093798456

More Books

Students also viewed these Accounting questions