High-Low Cost Estimation - Assume the local DHL† delivery service hub has the following information available about fleet miles and operating costs

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 =