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Hoi Chong Transport, Limited, operates a fleet of delivery trucks in Singapore. The company knows if a truck is driven 1 1 1 , 0

Hoi Chong Transport, Limited, operates a fleet of delivery trucks in Singapore. The company knows if a truck is driven 111,000 kilometers during a year, the average operating cost is 12.2 cents per kilometer. If a truck is driven only 74,000 kilometers during a year, the average operating cost increases to 14.1 cents per kilometer.
Required:
Using the high-low method, estimate the variable operating cost per kilometer and the annual fixed operating cost associated with the fleet of trucks.
Express the variable and fixed costs in the form Y = a + bX.
If a truck were driven 92,500 kilometers during a year, what total operating cost would you expect to be incurred?

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