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Hoi Chong Transport, Lid., operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven 117,000 kilometers during

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Hoi Chong Transport, Lid., operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven 117,000 kilometers during a year, the average operating cost is 12.8 cents per kilometer. If a truck is driven only 78,000 kilometers during a year, the average operating cost increases to 14.9 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. If a truck were driven 97,500 kilometers during a year, what total operating cost would you expect to be incurred

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