We Deliver operates a fleet of delivery trucks in Halifax. Analysis shows that if a truck is driven 129,000 kilometres during a year, the average operating cost is 13.7 cents ($0.137) per kilometre. If a truck is driven only 86,000 kilometres during a year, the average operating cost increases to 16.8 cents ($0.168) per kilometre. Required: 1. Using the high-low method, estimate the variable and fixed cost elements of the annual cost of truck operation. (Do not round your intermediate calculations. Round the Variable cost per kilometre to 3 decimal places and Fixed cost answer to nearest whole dollar amount.) Kilometers Driven Total Annual Cost High level of activity Low level of activity Change per kilometer 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 kilometre to 3 decimal places.) 3. If a truck was driven 108,000 kilometres during a year, what total cost would you expect to be incurred? (Do not round intermediate calculations.) Total annual cost