• Urban Taxis wants to understand the cost behavior related to miles driven to improve operational efficiency.
• Data Provided:
  • Week 1: Total Costs: $5,000, Miles Driven: 10,000
  • Week 4: Total Costs: $7,000, Miles Driven: 15,000
• Expected Deliverables:
  • Apply the High-Low Method to determine the variable cost per mile and fixed costs.
  • Create a cost equation.
  • Estimate the total costs for driving 20,000 miles.

Evaluate how a change in fuel prices might impact cost predictions