Greene Enterprises Has the Following Information About Its Truck Fleet

question 46

Multiple Choice

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

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Definitions:

Bankruptcy

A legal process through which individuals or entities unable to meet their financial obligations can seek relief from some or all of their debts.

Unemployment

The situation of being without a job despite searching for work, reflecting the inability of an economy to generate enough jobs for its workforce.