• Urban Rideshare wants to evaluate its costs related to the number of rides provided.
• Data Overview:
  • Low Traffic Month: Total Costs: $60,000, Rides: 3,000
  • High Traffic Month: Total Costs: $90,000, Rides: 4,500
• Required Analysis:
  • Use the High-Low Method to determine the variable cost per ride and fixed costs.
  • Develop a cost equation.
  • Estimate the total costs for 5,000 rides.
  • Discuss the impact of implementing surge pricing on overall costs and revenue.