Used the high-low method to determine that monthly cost


Fred Carson delivers parts for several local auto parts stores. He charges clients $0.75 per mile driven. Fred has determined that if he drives 2,000 miles in a month, his average operating cost is $0.55 per mile. If he drives 4,000 miles in a month, his average operating cost is $0.40 per mile. Fred has used the high-low method to determine that his monthly cost equation is: Total Cost = $600 + $0.25 per Mile.Determine how many miles Fred must drive to earn $1,000 profit.

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Used the high-low method to determine that monthly cost
Reference No:- TGS0684150

Expected delivery within 24 Hours