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    BBaton's Avatar
    BBaton Posts: 2, Reputation: 1
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    #1

    Oct 30, 2007, 07:18 PM
    high low method
    Estimate the variable and fixed cost elements of annual cost of truck operation?

    A truck delivery is driven 120000 during a year costing 11.6 but if a truck is driven only 80,000 kilometers at 13.6 increase in a year?:confused:
    BBaton's Avatar
    BBaton Posts: 2, Reputation: 1
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    #2

    Oct 30, 2007, 07:22 PM
    [
    A truck delivery is driven 120,000 during a year costing 11.6 yearly but if a truck is driven only 80,000 kilometers at 13.6 increases in a year? What would the variable and fixed cost would be ?:confused:[/QUOTE]
    abdulwahab's Avatar
    abdulwahab Posts: 1, Reputation: 1
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    #3

    Sep 4, 2008, 09:18 AM
    units cost
    highest 120000 11.6
    lowest 80000 13.6
    - -
    40000 2

    variable cost/unit =2/40000= 0.00005/unit
    fixed cost =11.6 - (120000*0.00005)
    =11.6 - 6
    =5.6 fixed cost
    chief77's Avatar
    chief77 Posts: 1, Reputation: 1
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    #4

    Sep 10, 2008, 09:23 AM
    If the truck above covers 100km what would you expect to incur?
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