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XPO is a trucking company that transports goods nationwide. After an analysis of its costs, XPO has determined that it incurs a total of $150,000
XPO is a trucking company that transports goods nationwide. After an analysis of its costs, XPO has determined that it incurs a total of $150,000 of costs at the lowest level of service (200 shipments/year), and $750,000 of costs at the highest level of service (3,200 shipments/ year). Answer the following questions using the High-Low method. Supporting calculations must be shown.
- What is XPO's variable cost per shipment?
- What are XPO's total fixed costs?
- What total costs would XPO expect to incur next month if it has 220 shipments?
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