EXERCISE 2-8 Cost Behavior: High-Low Method [L04, LO5] Hoi Chong Transport, Ltd., 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 11.4 cents per kilometer. If a truck is driven only 70,000 kilometers during a year, the average operating cost increases to 13.4 cents per kilometer. Required: 1. Using the high-low method, estimate the variable and fixed cost elements of the annual cost of the truck operation. 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 cost would you expect to be incurred? 2. 3