Hoi Chong Transport, Ltd., operates a fleet of delivery trucks in Singapore. The company has determined that 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.

1.

Using the high-low method, estimate the variable and fixed cost elements of the annual cost of the truck operation. (Do not round your intermediate calculations. Round the Variable cost per kilometer to 3 decimal places and Fixed cost answer to nearest whole dollar amount.)

	Kilometers	Total Annual
	Driven	Cost
High level of activity	?????	?????
Low level of activity	??????	???????
Change	??????	$?????
Variable cost per kilometer	??????	per kilometer
Fixed cost per year