Hoi Chong Transport, Ltd operates a fleet of delivery trucks in Singapore The company has determined that if a truck is driven 150,000 kilometres during a year, the average operating cost is 13 1 cents per kilometre If a truck is driven only 75,000 kilometres during a year, the average operating cost increases to 15 0 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 3 decimal places ) 2 Express the variable and fixed costs in the form Y a bX (Round the Variable cost to 3 decimal places ) 3 If a truck were driven 85,000 kilometres during a year, what total cost would you expect to be incurred (Round your intermediate calculations to 3 decimal places )

Question

Hoi Chong Transport, Ltd  operates a fleet of delivery trucks in Singapore  The company has determined that if a truck is driven 150,000 kilometres during a year, the average operating cost is 13 1 cents per kilometre  If a truck is driven only 75,000 kilometres during a year, the average operating cost increases to 15 0 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 3 decimal places ) 2  Express the variable and fixed costs in the form Y   a   bX   (Round the  Variable cost  to 3 decimal places ) 3  If a truck were driven 85,000 kilometres during a year, what total cost would you expect to be incurred  (Round your intermediate calculations to 3 decimal places )

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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 150,000 kilometres during

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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 3 decimal places.)

2.	Express the variable and fixed costs in the form Y = a + bX. (Round the "Variable cost" to 3 decimal places.)

3.	If a truck were driven 85,000 kilometres during a year, what total cost would you expect to be incurred? (Round your intermediate calculations to 3 decimal places.)