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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

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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 11.2 cents ($0.112) per kilometre. If a truck is driven only 88,000 kilometres during a year, the average operating cost increases to 13.2 cents ($0.132) 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.) Kilometers Driven Total Annual Cost 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.) 3. If a truck were driven 107.800 kilometres during a year. What total cost would you expect to be incurred? (Do not round intermediate calculations. Round the "Variable cost per kilometer" to 3 decimal places.) Total annual cost

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