Total cost
At 114,000 kilometres:
= 114,000 X $12.509
= $1,426,026
At 79,000 kilometres:
= 79,000 X $15.4
= $1,216,600
1)
Variable cost:
= ($1,426,026 - $1,216,600) / (114,000 - 79,000)
= $5.98360
Fixed cost:
= $1,216,600 - (79,000 X $5.9836)
= $743,895.60
2)
Y = $743,895.60 + 5.98360X
3)
Total annual cost:
= $743,895.60 + (5.98360 X 89,000)
= $1,276,436
Check my work 2 10 points Hoi Chong Transport Ltd. operates a fleet of delivery trucks...
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