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The Parker Family Trucking Company decided to use the high-low method and operating data from the past six months to estimate the fixed and variable
The Parker Family Trucking Company decided to use the high-low method and operating data from the past six months to estimate the fixed and variable components of trnasportation costs. The activity base used is a measure of trucking operating activity, termed miles driven. Transportation Costs Miles Driven January $ 950,000 300,000 February 1,062,500 375,000 March 1,040,000 360,000 April 1,142,000 428,000 May 1,100,000 400,000 June 1,250,000 500,000 Determine: 1. The variable cost per mile driven: 2. The Total fixed cost: 1 A B I !!! III % S3
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