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Amarjit Truckers, Ltd . operates a fleet of delivery trucks in North America. The company has determined that, if a truck is driven 1 2

Amarjit Truckers, Ltd. operates a fleet of delivery trucks in North America. The company has determined that, if a truck is driven 125,000 kilometres during a year, the average operating cost is 15.000 cents per kilometre. If a truck is driven only 52,000 kilometres during a year, the average operating cost increases to 18.0 cents per kilometre.
Required:
1. Using the high-low method, estimate the variable and fixed cost elements of the annual cost of truck operation. (Do not round intermediate calculations. Round the "Variable cost" to 5 decimal places. Round "Fixed cost" to 2 decimal places.)
2. 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.)
3. If a truck were driven 83,000 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.)

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