We Deliver operates a fleet of delivery trucks in Halifax. Analysis shows that if a truck is driven 121,000 kilometres during a year, the average operating cost is 11.7 cents ($0.117) per kilometre. If a truck is driven only 90,000 kilometres during a year, the average operating cost increases to 13.7 cents ($0.137) 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 kilometer" to 3 decimal places.) High level of activity Low level of activity Change Variable cost per kilometer Fixed cost per year Kilometers Driven Total Annual Cost