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 141,000 kilometres during a year, the average operating cost is 12.1 cents ($0.121) per kilometre. If a truck is driven only 94,000 kilometres during a year, the average operating cost increases to 14.6 cents ($0.146) per kilometre. DOK int Tint 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.) erences Kilometers Driven Total Annual Cost High level of activity Low level of activity Change 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.) 3. If a truck was driven 117,000 kilometres during a year, what total cost would you expect to be incurred? (Do not round intermediate calculations.) Total annual cost