Question - Delivery Dudes Services has the collected the following information about operating expenditures for its delivery trucks for the past five years:
Year Miles Operating Costs
2013 45,000 $185,000
2014 60,000 $200,000
2015 40,000 $170,000
2016 55,000 $195,000
2017 75,000 $215,150
Using the high-low method, what is the estimated fixed cost for 2018 at an activity level of 50,000 miles?
$123,200
$152,200
$134,600
$118,400