We Deliver operates a fleet of delivery trucks in Halifax. Analysis shows that if a truck is driven 133,000 kilometres during a year, theaverage operating cost is 11.3 cents ($0.113) per kilometre. If a truck is driven only 82,000 kilometres during a year, the averageoperating cost increases to 13.4 cents ($0.134) 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 yourintermediate calculations. Round the "Variable cost per kilometer" to 3 decimal places.)KilometersTotal AnnualDrivenCostHigh level of activityLow level of activityChange0 $Variable cost per KilometerFixed cost per year2. Express the variable and fixed costs in the form Y = a + bX. (Do not round your intermediate calculations. Round the "Variable costper kilometer" to 3 decimal places.)Y =3. If a truck were driven 102,700 kilometres during a year, what total cost would you expect to be incurred? (Do not roundintermediate calculations. Round the "Variable cost per kilometer" to 3 decimal places.)Total annual cost