The cost function in requirement 1 is an estimate of how costs behave within the relevant range, not at cost levels outside the relevant range. if there are no months with zero miles driven represented in the delivery cost account in the general ledger, data in that account can be used to estimate the fixed costs at the zero miles driven level. the constant component of the cost function provides the best available starting point for a straight line that approximates how a cost behaves within the relevant range .

In early january, burger mania acquired 100% of the common stock of the crispy taco restaurant chain. the purchase price allocation included the following items: $4 million, patent; $3 million, trademark considered to have an indefinite useful life; and $5 million, goodwill. burger mania's policy is to amortize intangible assets with finite useful lives using the straight-line method, no residual value, and a five-year service life. what is the total amount of amortization expense that would appear in burger mania's income statement for the first year ended december 31 related to these items?