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We Deliver operates a eet of delivery trucks in Halifax. Analysis shows that if a truck is driven 106,000 kilometres during a year, the average
We Deliver operates a eet of delivery trucks in Halifax. Analysis shows that if a truck is driven 106,000 kilometres during a year, the average operating cost is 10.5 cents ($0.105) per kilometre. If a truck is driven only 66,000 kilometres during a year, the average operating cost increases to 12.5 cents ($0.125) per kilometre. Required: 1. Using the highlow method, estimate the variable and xed cost elements of the annual cost of truck operation. (Do not round your intermediate calculations. Round the "Variable cost per kilometer" to 3 decimal places.) High level of activity Low level of activity Change Variable cost per kilometer Fixed cost per year 2. Express the variable and fixed costs in the form Y = a + bX. (Do not round your intermediate calculations. Round the "Variable cost per kilometer" to 3 decimal places.) w 3. If a truck were driven 90,100 kilometres during a year, what total cost would you expect to be incurred? (Do not round intermediate calculations. Round the \"Variable cost per kilometer"th 3 decimal places.) Q Snipping Tool E gem m a 7K r_:__:_
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