Greene Enterprises has the following information about its truck fleet miles and operating costs: $$\begin{array} { c c c }
\text { Year } & \text { Miles } & \text { Operating Costs } \
2005 & 400,000 & £ 256,000 \
2006 & 480,000 & 280,000 \
2007 & 560,000 & 320,000
\end{array}$$ What is the best estimate of total costs using the high-low method if the expected fleet mileage for 2008 is 500,000 miles?
A)£288,000
B)£296,000
C)£256,000
D)£320,000

Question

Greene Enterprises has the following information about its truck fleet miles and operating costs: $$\begin{array} { c c c } 
\text { Year } & \text { Miles } & \text { Operating Costs } \
2005 & 400,000 & £ 256,000 \
2006 & 480,000 & 280,000 \
2007 & 560,000 & 320,000
\end{array}$$ What is the best estimate of total costs using the high-low method if the expected fleet mileage for 2008 is 500,000 miles?
A)£288,000
B)£296,000
C)£256,000
D)£320,000

Quizplus · Accepted Answer

The Answer is B

Greene Enterprises Has the Following Information About Its Truck Fleet