Question 2 Cost Behaviour Suggested time 20 minutes 10 Marks Discreet Delivery operates a fleet of exclusive moving trucks in Los Angeles, often hired by celebrities when moving residences, Analysis shows that in 2019, the trucks were driven 150.000 kilometres during the year whilst moving Liam Hemsworth, and the average Operating cost was $1.24 per kilometer, or $186.000 total. In 2020, the trucks were driven only 100,000 kilometres during the year, moving Harry and Megan from Vancouver Island to Los Angeles, and the average Operating cost increased to $1.52 per kilometer, or $152,000 total. Required 1) Using the high-low method, estimate the variable and fixed cost elements of the annual Operating costs for the trucks 2) Prepare a contribution format income statement for 2020. Other information for 2020 is as follows: Sales revenue $550,000, variable cost of good sold $220.000, variable selling expenses $40,000, Salaries $90,000, and fixed Other expenses $30.200