Answer:
C
Step-by-step explanation:
Answer:
y= 48 + 0.1x
x= miles driven
Step-by-step explanation:
<u>We need to calculate the fixed and variable cost (per mile) of renting a car. To do that, we will use the high-low method:</u>
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (65 - 58) / (170 - 100)
Variable cost per unit= $0.1 per mile
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 65 - (0.1*170)
Fixed costs= $48
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 58 - (0.1*100)
Fixed costs= $48
y= 48 + 0.1x
x= miles driven
Answer:
I believe A is the answer
