Question

(Ch5.1) WasteKing uses a fleet of trucks in its business, and wants to know how distance affects these costs. It’s Miles driven and Operating costs during the recent 5 months were as follow: in January 18,300 miles driven with the total operating cost of $11,200; in February 16,500 miles with $10,700; in March 14,500 miles with $9,600; in April 11,500 miles with $7,020; and in May 10,300 miles driven with $7,200 of operating cost. Using the hi-lo method, what is the monthly fixed cost?

Select one:

a. $1,638 rounded.

b. All listed choices are incorrect.

c. $47.12 rounded.

d. $2,050 rounded.

Answer 1

Answer: Option ( d ) $2,050 rounded