In recent years, there has been a large push for an increase in the use of renewable resources to produce the energy we need to power our vehicles. one of the newer fuels that has become more widely available is e85, a mixture of 85% ethanol and 15% gasoline. despite being more environmentally friendly, one of the potential drawbacks of e85 fuel is that it produces less energy than conventional gasoline. assume a car gets 28.0 mi/gal using gasoline at $3.50/girl and 22.5 mi/gal using e85 at $2.85/gal. how much will it cost to drive 500. miles using each fuel?

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.)