Barron Enterprises Has the Following Information About Its Truck Fleet

question 64

Multiple Choice

Barron Enterprises has the following information about its truck fleet miles and operating costs: $\begin{array}{rrr}\text { Year } & \text { Miles } & \text { Operating Costs }\\\hline2016 & 400,000 & \$ 256,000 \\2017 & 480,000 & 280,000 \\2018 & 560,000 & 320,000\end{array}$ What is the best estimate of total costs using the high-low method if the expected fleet mileage for 2018 is 500,000 miles?

• A)$288,000
• B)$296,000
• C)$256,000
• D)$320,000

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