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Exercise 6A-3 (Algo) Cost Behavior; High-Low Method [LO6-10] Hol Chong Transport, Limited, operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven 168,000 kilometers during a year, the average operating cost is 13.2 cents per kilometer. If a truck is diven only 112,000 kilometers during a year, the average operating cost increases to 167 cents per kilometer. Required: 1. Using the high-low method, estimate the variable operating cost per kilometer and the annual fixed operating cost associated with the fleet of trucks. 2. Express the variable and fixed costs in the form =a+bX. 3. If a truck were driven 140,000 kilometers during a year, what total operating cost would you expect to be incutred? Complete this question by entering your answers in the tabs below. Using the high-low method, estimate the variable operating cost per kilometer and the annual fixed operating cost associated Topper Sports, Incorporated, produces high-quality sports equipment. The company's Racket Division manufactures three tennis rackets - the Standard, the Deluxe, and the Pro-that are widely used in amateur play. Selected information on the rackets is given below: All sales are made through the company's own retail outlets. The Racket Division has the following fixed costs: Sales, in units, over the past two months have been as follows: Required: 1-a. Prepare contribution format income statements for April. 1-b. Prepare contribution format income statements for May. 3. Compute the Racket Division's break-even point in dollar sales for April. 4. Would the break-even point be higher or lower with May's sales mix than with April's sales mix? 5. Assume that sales of the Standard racket increase by $20,600. What would be the effect on net operating income? What would be the effect if Pro racket sales increased by $20,600 ? Do not prepare income statements, use the incremental analysis approach in determining your