A machine cell uses 192 pounds of a certain material each day. Material is transported in vats that hold 22 pounds each. Cycle time for the vats is about 1.50 hours. The manager has assigned an inefficiency factor of .07 to the cell. The plant operates on an eight-hour day.

Exercise 2-12 cost behavior; high-low method [lo2-3, lo2-4] speedy parcel service operates a fleet of delivery trucks in a large metropolitan area. a careful study by the company’s cost analyst has determined that if a truck is driven 120,000 miles during a year, the average operating cost is 11.6 cents per mile. if a truck is driven only 80,000 miles during a year, the average operating cost increases to 13.6 cents per mile. required: 1.& 2. using the high-low method, estimate the variable and fixed cost elements of the annual cost of truck operation. (round the "variable cost per mile" to 3 decimal places.)