Gcullumber cosmetics acquired 13% of the 282,000 shares of common stock of elite fashion at a total cost of $14 per share on march 18, 2020. on june 30, elite declared and paid a $73,000 dividend. on december 31, elite reported net income of $238,840 for the year. at december 31, the market price of elite fashion was $16 per share.

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.)