Wickers Restoration Services had the following transactions on May. 1. Received $48,000 from sale of common stock. 2. Paid rent on office for the month, $880. 3. Purchased supplies on account, $1,750. 4. Earned fees, receiving cash, $12,600. 5. Paid creditor on account, $1,000. 6. Paid automobile expenses for month, $375, and miscellaneous expenses, $250. 7. Paid office salaries for the month, $3,900. 8. Earned fees which the customer will pay next month, $2,400. 9. Determined that the cost of supplies used was $280. 10. Paid dividends, $2,400.

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.)