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Hoi chong transport ltd operates a fleet of delivery trucks

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Hoi Chong Transport, Ltd., operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven 105,000 kilometers during a year, the average operating cost is 11.4 cents per kilometer. If a truck is driven only 70,000 kilometers during a year, the average operating cost increases to 13.4 cents per kilometer.

Requirement 1:Using the high-low method, estimate the variable and fixed cost elements of the annual cost of the truck operation

 

Reference no: EM13597453

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