Chapter 1 XG What other factors other th G 3.f a truck were driven 80,0 O ezto.mm 12.50 points Exercise 1-8 Cost Behavior, High-Low Method [LO1-4, LO1-5 Hoi Chong Transport, Ltd., operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven 105,000 kilometers during a year, the average operating cost is 11.4 cents per kilometer. If a truck is driven only 70,000 kilometers during a year, the average operating cost increases to 13.4 cents per kilometer Required: 1. sing the high-low method, estimate the variable and fixed cost elements of the annual cost of the truck operation. (Do not round your intermediate calculations. Round the Variable cost per kilometer to 3 decimal places.) Kilometers Total Annual Driven Cost High level of activity Low level of activity Change 105,000 11,970 9,380 2,590 70,000 35,000 S Variable cost per kilometer S Fixed cost per year 0.074 per killometer 4,200 2. Express the variable and fixed costs in the form Y-a+ bX. (Do not round your intermediate calculations. Round the Variable cost per kilometer to 3 decimal places.) 4,200+0.074 O Type here to search