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1 Amarjit Truckers, Ltd . operates a fleet of delivery trucks in North America. The company has determined that, if a truck is driven 1

1 Amarjit Truckers, Ltd. operates a fleet of delivery trucks in North America. The company has determined that, if a truck is driven 130,000 kilometres during a year, the average operating cost is 15.000 cents per kilometre. If a truck is driven only 54,000 kilometres during a year, the average operating cost increases to 18.0 cents per kilometre.
Required:
Using the high-low method, estimate the variable and fixed cost elements of the annual cost of truct operation. (Do not round intermediate calculations. Round the "Variable cost" to 5 decimal places. Round "Fixed cost" to 2 decimal places.)
\table[[,,],[Variable cost,,per kilometre],[Fixed cost,,per year]]
Express the variable and fixed costs in the form Y=a+bx.(Do not round intermediate calculations. Round the "Variable cost" to 5 decimal places. Round "Fixed cost" to 2 decimal places.)
Y=
If a truck were driven 86,000 kilometres during a year, what total cost would you expect to be incurred? (Do not round intermediate calculations. Round "Total annual cost" to 2 decimal places.)
Total annual cost
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