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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.

  1. What is XPO's variable cost per shipment?
  2. What are XPO's total fixed costs?
  3. What total costs would XPO expect to incur next month if it has 220 shipments?

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