Exercise 3-7 Cost Behaviour; High-Low Method [LO2] We Deliver operates a fleet of delivery trucks in Halifax. Analysis shows that if a truck is driven 168,000 kilometres during a year, the average operating cost is 13.2 cents ($0.132) per kilometre. If a truck is driven only 112,000 kilometres during a year, the average operating cost increases to 16.7 cents ($0.167) 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.) Total Annual Kilometers Driven Cost High level of activity Low level of activity Change 0 $ 0 Variable cost per kilometer 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.) Y = X 3. If a truck was driven 140,000 kilometres during a year, what total cost would you expect to be incurred? (Do not round intermediate calculations.) Total annual cost