Hoi Chong Transport, Ltd. operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven 114,000 kilometres during a year, the average operating cost is 12.509 cents per kilometre. If a truck is driven only 79,000 kilometres during a year, the average operating cost increases to 15.4 cents per kilometre. (The Singapore dollar is the currency used in Singapore.)

required:

1.Using the high-low method, estimate the variable and fixed cost elements of the annual cost of truck operation.(Round the "Variable cost" to 5 decimal places. Round "Fixed cost" to 2 decimal places.)

Express the variable and fixed costs in the formY=a+bX .(Round the "Variable cost" to 5 decimal places. Round "Fixed cost" to 2 decimal places.)

If a truck were driven 89,000 kilometres during a year, what total cost would you expect to be incurred?(Do not round intermediate calculations. Round "Total annual cost" to 2 decimal places.)