Exercise 5A-3 Cost Behavior; High-Low Method (LO5-10) Hoi Chong Transport, Ltd., operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven 138,000 kilometers during a year, the average operating cost is 14.8 cents per kilometer. If a truck is driven only 92,000 kilometers during a year, the average operating cost increases to 18.6 cents per kilometer. Required: 1. Using the high-low method, estimate the variable operating cost per kilometer and the annual fixed operating cost associated with the fleet of trucks. 2. Express the variable and fixed costs in the form Y = a + bx. 3. If a truck were driven 115,000 kilometers during a year, what total operating cost would you expect to be incurred? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using the high-low method, estimate the variable operating cost per kilometer and the annual fixed operating cost associated with the fleet of trucks. (Do not round your intermediate calculations. Round the Variable cost per kilometer to 3 decimal places.) Variable cost Fixed cost per kilometer per year Required 1 Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 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.) Y= X Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 If a truck were driven 115,000 kilometers during a year, what total operating cost would you expect to be incurred? (Do not round intermediate calculations.) Total annual cost