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Hoi Chong Transport, Limited, operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven 156,000 kilometers during

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Hoi Chong Transport, Limited, operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven 156,000 kilometers during a year, the average operating cost is 126 cents per kilometer. If a truck is dtiven only 104,000 kilometers during a year, the average operating cost increases to 15.6 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 130,000 kilometers during a year, what total operating cost would you expect to be incurred

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