Chapter 03 Inclass quiz_SOLN

Chapter 03 Inclass quiz_SOLN - Answer: _ $2.00 per mile _...

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Acc 200P Name: ________________________ Lab Section #_________________ Chapter 3 SOLUTION Trusty Delivery Inc. would like to estimate the cost of operating its delivery trucks and has decided to use the high/low method. The high and low activity level months have been identified and the following information is available # miles driven Operating Costs June ------------------ 800 $3,500 September ----------- 1,400 4,700 A. Using the data above, what is the variable cost per mile?
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Unformatted text preview: Answer: _ $2.00 per mile _ $4,700 - $3,500 = $2.00 per mile 1,400 - 800 B. Using the data above, what is the total fixed cost per month? Answer: _ $1,900 ___ $4,700 = FC + $2(1,400) FC = $1,900 C. Write the equation to predict total mixed costs. Y = $1,900 + $2x D. If management expects 1,000 miles to be driven in October, calculate total estimated operating costs. Answer: _____________ Y = $1,900 + $2(1,000) Y = $3,900...
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This note was uploaded on 11/22/2010 for the course ACC 200 taught by Professor Buckless during the Spring '08 term at N.C. State.

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