Unified Parcel, Inc. operates a local parcel delivery service. The company keeps detailed records…

Unified Parcel, Inc. operates a local parcel delivery service. The company keeps detailed records…

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 the truck operating cost using the high-low method. Total cost at high level of activity: 110,000 x $0.075 = $8,250 Total cost at low level of activity: 60,000 x $0.0875=$5250 What would be the operating cost of 90,000 mile? .:.

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