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Question 6 Agentco Travel offers a commuter bus service from suburban towns to Gatwick International Airport. Each of its 10 buses makes between 1,000 and

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Question 6 Agentco Travel offers a commuter bus service from suburban towns to Gatwick International Airport. Each of its 10 buses makes between 1,000 and 2,000 round-trips per year. The records indicate that a bus that has made 1,000 round-trips in the year incurs an average operating cost of 350 per round-trip, and one that has made 2,000 round-trips in the year incurs an average operating cost of 300 per round-trip. Required a) Using the high-low method, estimate the linear relationship y = a + bx, where y is the total annual operating cost of a bus and X is the number of round-trips it makes to Gatwick International Airport during the year. (6 marks) b) Give two examples of costs that would be included in a and in b. (4 marks) c) If Agentco Travel expects each bus to make, on average, 1,200 round-trips in the coming year, what should its estimated operating budget for the bus fleet be

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