Exercise $2$A$-3($Static$)$ Cost Behavior; High$-$Low Method $[$LO$2-10]$

Hoi Chong Transport, Limited, operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven $105,000$ kilometers during a year, the average operating cost is $11\mathrm{.}4$ cents per kilometer. If a truck is driven only $70,000$ kilometers during a year, the average operating cost increases to $13\mathrm{.}4$ cents per kilometer.

Required:

Using the high$-$low method, estimate the variable operating cost per kilometer and the annual fixed operating cost associated with the fleet of trucks.

Express the variable and fixed costs in the form Y $=$ a $+$ bX$.$

If a truck were driven $80,000$ kilometers during a year, what total operating cost would you expect to be incurred?