Exerclse $2$A$-3($Algo$)$ Cost Behavlor; HIgh$-$Low Method $[$LO$2-10]$

Hoi Chong Transport, Limited, operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven $165,000$ kilometers during a year, the average operating cost is $12\mathrm{.}9$ cents per kilometer. If a truck is driven only $110,000$ kilometers during a year, the average operating cost increases to $16\mathrm{.}2$ cents per kilometer.

Requlred:

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 $Y=a+bx$

If a truck were driven $137,000$ 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 $2$

Using the high$-$low method, estimate the variable operating cost per kilometer and the annual fixed operating cost associated with the fleet of trucks.

Note: Do not round your intermediate calculations. Round the Variable cost per kilometer to $3$ decimal places.

$\backslash$table$[[$Variable cost$,,$per kilameter$],[$Fixed cost$,,$per year$]]$