Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please find answers Hol Chong Transport, Ltd. operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven
please find answers
Hol Chong Transport, Ltd. operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven 114,000 kilometres during a year, the average operating cost is 12509 cents per kilometre. If a truck is driven only 79.000 kilometres during a year, the average operating cost increases to 15.4 cents per kilometre (The Singapore dollar is the currency used in Singapore) Required: 1. Using the high-low method, estimate the variable and fixed cost elements of the annual cost of truck operation (Round the Variable cost" to 5 decimal places. Round "Fixed cost" to 2 decimal places.) Variable cost Fored cost per kilometre per year 2. Express the variable and fixed costs in the form Y= a - OX (Round the "Variable cost" to 5 decimal places. Round Fixed cost" to 2 decimal places.) X 3. a truck were driven 89.000 kilometres during a year, what total cost would you expect to be incurred? (Do not round Intermediate calculations. Round "Total annual cost" to 2 decimal places.)Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started