High-Low Cost EstimationAssume the local DHL† delivery service hub has the following information available about flee

| January 30, 2017

Question
High-Low Cost Estimation

Assume the local DHL† delivery service hub has the following information available about fleet miles and operating costs:
Year Miles Operating Costs
2006 556,000 $177,000
2007 696,000 212,000
Use the high-low method to develop a cost-estimating equation for total annual operating costs. (Let X = annual fleet miles.)
Total annual costs =

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