A developer plans to buy a parcel of land and construct an office building on top of it. He narrows his search to two possible lots in adjacent states with convenient access to highways. The expected returns from Lots C and D are $190,000 and $210,000, respectively. Required: What is the opportunity cost of funds the developer uses to purchase Lot D

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.)