One method of evaluating and generating new ideas about products and services that we learned in class and from our readings was from an article by Mauborgne and Kim, of INSEAD business school in Paris. The method consists of utilizing a grid with 36 squares and matches various combinations of the buyer experience with value-added called utility levers.
This grid is called .

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.)