We Deliver operates a fleet of delivery trucks in Halifax. Analysis shows that if a truck is driven 177,000 kilometres during a year, the average operating cost is 12.3 cents ($0.123) per kilometre. If a truck is driven only 118,000 kilometres during a year, the average operating cost increases to 15.5 cents ($0.155) 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 0 $ 0 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 147,000 kilometres during a year, what total cost would you expect to be incurred? (Do not round intermediate calculations.) Total annual cost