Hoi Chong Transport, Limited, operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven 159,000 kilometers during a year, the average operating cost is 12.7 cents per kilometer. If a truck is driven only 106,000 kilometers during a year, the average operating cost increases to 15.8 cents per kilometer. Required: 1. Using the high-low method, estimate the variable operating cost per kilometer and the annual fixed operating cost associated with the fleet of trucks. 2. Express the variable and fixed costs in the form Y = a +bX. 3. If a truck were driven 132,000 kilometers during a year, what total operating cost would you expect to be incurred?
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- ABC Ltd., operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven 138,000 kilometers during a year, the average operating cost is 14.8 cents per kilometer. If a truck is driven only 92,000 kilometers during a year, the average operating cost increases to 18.6 cents per kilometer. Required: 1. Using the high-low method, estimate the variable operating cost per kilometer and the annual fixed operating cost associated with the fleet of trucks. 2. Express the variable and fixed costs in the form Y = a + bx. 3. If a truck were driven 115,000 kilometers during a year, what total operating cost would you expect to be incurred?Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completic Hoi Chong Transport, Limited, operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven 105,000 kilometers during a year, the average operating cost is 11.4 cents per kilometer. If a truck is driven only 70,000 kilometers during a year, the average operating cost increases to 13.4 cents per kilometer. Required: 1. Using the high-low method, estimate the variable operating cost per kilometer and the annual fixed operating cost associated with the fleet of trucks. 2. Express the variable and fixed costs in the form Y = a +bX. 3. If a truck were driven 80,000 kilometers during a year, what total operating cost would you expect to be incurred? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Answer is complete but not entirely correct. If a truck were driven 80,000…Talladega Tire and Rubber Company has capacity to produce 500,000 tires. Talladega presently produces and sells 400,000 tires for the North American market at a price of $200 per tire. Talladega is evaluating a special order from a European automobile company, Autobahn Motors. Autobahn is offering to buy 100,000 tires for $150 per tire. Talladega's accounting system indicates that the total cost per tire is as follows: Line Item Description Amount Direct materials $75 Direct labor 20 Factory overhead (70% variable) 30 Selling and administrative expenses (60% variable) 18 Total $143 Talladega pays a selling commission equal to 3% of the selling price on North American orders, which is included in the variable portion of the selling and administrative expenses. However, this special order would not have a sales commission. If the order was accepted, the tires would be shipped overseas for an additional shipping cost of $3 per tire. In addition, Autobahn has made the…
- Flexgen Corporation uses trucks to transport bottles from the warehouse to different retail outlets. Gasoline costs are $0.25 per kilometre driven. Insurance costs are $5,500 per year. Calculate the total costs and the cost per kilometre for gasoline and insurance if the truck is driven (a) 21,000 kilometres per year or (b) 37,000 kilometres per year. Complete the table below. (Round the costs per kilometre to the nearest cent, $X.XX.) Total costs Cost per kilometre (a) Driven 21,000 kilometres (b) Driven 37,000 kilometresHoi Chong Transport, Ltd., operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven 93,000 kilometers during a year, the average operating cost is 9.2 cents per kilometer. If a truck is driven only 62,000 kilometers during a year, the average operating cost increases to 9.9 cents per kilometer. Using the high-low method, estimate the variable operating cost per kilometer and the annual fixed operating cost associated with the fleet of trucks. (Do not round your intermediate calculations. Round the Variable cost per kilometer to 3 decimal places.) Express the variable and fixed costs in the form Y = a + bX. (Do not round your intermediate calculations. Round the Variable cost per kilometer to 3 decimal places.) If a truck were driven 77,500 kilometers during a year, what total operating cost would you expect to be incurred? (Do not round intermediate calculations.)a) Provincial Packages, Inc. operates a local parcel delivery service. The company keeps detailed records relating to operating costs of trucks, and has found that if a truck is driven 122,000 kilometres per year, the operating cost is 8.5 cents per kilometre. This cost increases to 9.25 cents per kilometre if a truck is driven 72,000 kilometres per year. Required: Estimate the cost formula for truck operating costs using the high-low method. Accessibility: Investigate Focus
- 119. Unified Parcel, Inc., operates a local parcel delivery service. The company keeps detailed records relating to operating costs of trucks, and has found that if a truck is driven 110,000 miles per year the operating cost is 7.5 cents per mile. This cost increases to 8.75 cents per mile if a truck is driven 60,000 miles per year. Required: Estimate the cost formula for truck operating costs using the high-low method.Wildhorse Cash, Ltd. operates a chain of exclusive ski hat boutiques in the western United States. The stores purchase several hat styles from a single distributor at $13 each. All other costs incurred by the company are fixed. Wildhorse Cash, Ltd. sells the hats for $49 each. (a) If fixed costs total $630,000 per year, what is the breakeven point in units? In sales dollars? (Use your answer of breakeven units to calculate the breakeven point in dollars.) The breakeven point hats The breakeven sales $In problem 13.4, if the company can ship the units unassembled, it can ship 750 units in a truck. What is the line haul cost per unit now?(13.4) A company ships a particular product to a market located 1500 miles from the plant at a cost of $4.50 per mile. Normally it ships 500 units at a time. What is the line haul cost per unit?
- You SUckaroo CC. a ho(keyequipment business, estimates that it will sell 3 400 pairs of shin pads per year from a distributor in Spain. Each pair costs R 195.00 to purchase and R18.00 in freight charges. The company borrows funds at an interest rate of 9% per annum to finance inventories. Stickaroo ccs purchasing agent has calculated that it costs R 472.00 to place an order for each pair of shin pads and that the holding cost is R 6.00 for each pair. Calculate the eoq.6. Talladega Tire and Rubber Company has capacity to produce 500,000 tires. Talladega presently produces and sells 400,000 tires for the North American market at a price of $200 per tire. Talladega is evaluating a special order from a European automobile company, Autobahn Motors. Autobahn is offering to buy 100,000 tires for $150 per tire. Talladega's accounting system indicates that the total cost per tire is as follows: Cost Driver Dollar Amount per Tire Direct materials $75 Direct labor 20 Factory overhead (70% variable) 30 Selling and admin expenses (60% variable) 18 Total 143 Talladega pays a selling commission equal to 3% of the selling price on North American orders, which is included in the variable portion of the selling and administrative expenses. However, this special order would not have a sales commission. If the order was accepted, the tires would be shipped overseas for an additional shipping cost of $3 per tire. In addition, Autobahn has made the order conditional on…The Mayflower Transport Company operates a fleet of delivery trucks in the Ottawa area. It has been determined that if a truck is driven 105,000 kilometers over a one year period the average operating cost is $0.114 per kilometer. If a truck is driven only 70,000 kilometers annually, the operating costs increases to $0.134 per kilometer. a) Using the high-low method, estimate the variable and fixed cost elements of the annual cost of truck operation. b) Using the formula Y=a + bX, present the fixed and variable costs. c) If a truck were driven 80,000 kilometers over a one year period, what total cost would your expect to be incurred?