Required a$.$ The accountants planned to use the account analysis method to explain and predict the fleet expenses. Based on the information provided, which of the five costs are fixed? Which costs are variable based on miles driven? Which costs are mixed? Explain how you came to your conclusions. b$.$ For any mixed costs, use the high$-$low method to separate the fixed and variable components, using miles driven as the cost driver. c$.$ Place all of this fleet expense information into one final cost function where Y is total fleet expenses and X is number of miles driven. Write out the formula in Y $=$ m$($X$)+$ b format. d$.$ If Leons employer decides to add capacity to the business by purchasing another vehicle, would we expect the cost function in part $($c$)$ to remain accurate? Why or why not? e$.$ If Leon had not submitted his mileage information to Bob for this fourth quarter, which of the above cost behavior classifications would have been different?

Karen Congo Farmer; Amy Fredin. Cost Accounting: With Integrated Data Analytics, $1$st Edition $($p$.3-44).$ Kindle Edition.