Exercise 2-12 Cost Behavior; High-Low Method [L02-3, LO2-4] Speedy Parcel Service operates a fleet of delivery trucks in a large metropolitan area. A careful study by the company's cost analyst has determined that if a truck is driven 120,000 miles during a year, the average operating cost is 11.6 cents per mile. If a truck is driven only 80,000 miles during a year, the average operating cost increases to 13.6 cents per mile. Required: 1.& 2.Using the high-low method, estimate the variable and fixed cost elements of the annual cost of truck operation. (Round the "Variable cost per mile" to 3 decimal places.) Miles Total Annual Driven Cost High level of activity Low level of activity Change Variable cost per mile Fixed cost per year per unit 3. If a truck were driven 100,000 miles during a year, what total cost would you expect to be incurred? Total annual cost