Question
The Mayfield Delivery Service has the following information about its truck fleet miles and operating costs: Year Miles Operating Costs 2018 125,000 $80,000 2019 150,000
The Mayfield Delivery Service has the following information about its truck fleet miles and operating costs:
| Year | Miles | Operating Costs |
| 2018 | 125,000 | $80,000 |
| 2019 | 150,000 | $87,500 |
| 2020 | 175,000 | $105,000 |
What is the best estimate of fixed costs for fleet operating expenses in 2020 using the high-low method?
Select one:
A. $50,000
B. $17,500
C. $17,000
D. $25,000
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Fundamental Accounting Principles Volume 2
Authors: Kermit Larson, Heidi Dieckmann
15th Canadian Edition
1259087360, 9781259087363
