Mercury transit, Inc. operates a fleet of delivery trucks in a large city. The company has determine that if a truck is driven 105,000 miles during a year, the operating cost is 11.4 cents per mile. If a truck is driven only 70,000 miles during a year, the operating cost increase to 13.4 cents per mile. Required: 1. Using the high-low method, determine the variable and fixed cost elements of the annual cost of truck operation. 2. Express the variable and fixed cost in the form y=a+bx. 3. If a truck is driven 80,000 miles duning a year, what total cost would be expect to be incured? Problem IV St.Mark's Hospital contains 450 beds. The average occupancy rate is 80% per month : At this level of occupancy ; the hospital's operating costs are $32 per occupied bed per day, assuming a 30 -days month. This $32 figure contains both variable and fixed cost elements. During June, the hospital's occupancy rate was only 60%. A total of $326,700 in operating cost was incurred during the month. Required : 1. Using the high-low method, determine : a. The variable cost per occupied bed on a daily basis. b. The total fixed operating costs per [imonth. 2. Assume an occupancy rate of 70%. What amount of total operating cost would you expect the hospital to incur? Mercury transit, Inc. operates a fleet of delivery trucks in a large city. The company has determine that if a truck is driven 105,000 miles during a year, the operating cost is 11.4 cents per mile. If a truck is driven only 70,000 miles during a year, the operating cost increase to 13.4 cents per mile. Required: 1. Using the high-low method, determine the variable and fixed cost elements of the annual cost of truck operation. 2. Express the variable and fixed cost in the form y=a+bx. 3. If a truck is driven 80,000 miles duning a year, what total cost would be expect to be incured? Problem IV St.Mark's Hospital contains 450 beds. The average occupancy rate is 80% per month : At this level of occupancy ; the hospital's operating costs are $32 per occupied bed per day, assuming a 30 -days month. This $32 figure contains both variable and fixed cost elements. During June, the hospital's occupancy rate was only 60%. A total of $326,700 in operating cost was incurred during the month. Required : 1. Using the high-low method, determine : a. The variable cost per occupied bed on a daily basis. b. The total fixed operating costs per [imonth. 2. Assume an occupancy rate of 70%. What amount of total operating cost would you expect the hospital to incur