Professional Memo
Fixed cost per year: Total cost at 120,000 miles $13,920 Less variable cost element: 120,000 miles × $0.076 per mile 9,120 Fixed cost per year $4,800 2. Y = $4,800 + $0.076X. 3. Fixed cost $4,800 Variable cost: 100,000 miles × $0.076 per mile 7,600 Total annual cost $12,400 Exercise 5-10 (20 minutes) 1. ................
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