Need a Hair Cut Ltd. operates

Need a Hair Cut Ltd. operates a fleet of rental cars inKingsvilli. The company has determined that if a car is driven105,000 kilometres during a year, the average operating cost is12.665 cents per kilometre. If a car is driven only 70,000kilometres during a year, the average operating cost increases to14.5 cents per kilometre. Note: Please do not round the decimalplaces of cost per kilometre, which is 12.665 and 14.5 cents perkm.


  1. Using the high–low method, estimate the variable and fixed costelements of the annual cost of truck operation.
  2. Express the variable and fixed costs in the form Y =a + bX.
  3. If a rental car were driven 80,000 kilometres during a year,what total cost would you expect to be incurred?


KM Driven Average OpCost TotalCost
High LEVEL         105,000 12.665         1,329,825
Low Level           70,000 14.5         1,015,000
Change 35000 314825
1) Variable cost(Slope) = Change in TotalCost / Change in KM Driven
8.995 Per km
Total cost – Variable cost = Fixedcost
1329825 – (105000*8.995) = Fixedcost
Fixed Cost = $385,350
2) y = $385,350 + 8.995 X
4) Operating cost (80000 km ) =80000*8.995 +385350

"Our Prices Start at $11.99. As Our First Client, Use Coupon Code GET15 to claim 15% Discount This Month!!"

Calculate your order
Pages (275 words)
Standard price: $0.00
Client Reviews
Our Guarantees
100% Confidentiality
Information about customers is confidential and never disclosed to third parties.
Original Writing
We complete all papers from scratch. You can get a plagiarism report.
Timely Delivery
No missed deadlines – 97% of assignments are completed in time.
Money Back
If you're confident that a writer didn't follow your order details, ask for a refund.

Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:
Power up Your Academic Success with the
Team of Professionals. We’ve Got Your Back.
Power up Your Study Success with Experts We’ve Got Your Back.