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The Heartland Delivery Service has the following information about its truck fleet miles and operating costs: Year Miles Operating Costs 2015 125,000 $80,000 2016 150,000

The Heartland Delivery Service has the following information about its truck fleet miles and operating costs:

Year

Miles

Operating Costs

2015

125,000

$80,000

2016

150,000

$87,500

2017

175,000

$105,000

What is the best estimate of fixed costs for fleet operating expenses in 2017 using the high-low method?

  1. $50,000
  2. $17,000
  3. $17,500
  4. $25,000

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