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:

Price of B

The cost required to purchase good B or the amount a consumer is expected to pay for acquiring good B.

Marginal Utilities

The added satisfaction or utility that a person receives from consuming an additional unit of a good or service.

Pocket Money

Usually small amounts of money given to children by their parents on a regular basis.

Hard Candies

Small, flavored sugar candies that are solid at room temperature, often sucked rather than chewed.