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Hoi Chong Transport, Ltd., operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven 108,000 kilometers during
Hoi Chong Transport, Ltd., operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven 108,000 kilometers during a year, the average operating cost is 11.9 cents per kilometer. If a truck is driven only 72,000 kilometers during a year, the average operating cost increases to 13.7 cents per kilometer. Using the high-low method, estimate the variable and fixed cost elements of the annual cost of the truck operation. Express the variable and fixed costs in the form Y = a + bX. If a truck were driven 90,000 kilometers during a year, what total cost would you expect to be incurred
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