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High-low cost estimation

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High-Low Cost Estimation
Assume the local DHL delivery service hub has the following information available about fleet miles and operating costs:
2010 555,000 $177,000
2011 671,000 206,000


Use the high-low method to develop a cost-estimating equation for total annual operating costs. (Let X = annual fleet miles.)
Total annual costs =

 

Reference no: EM131766096

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