Exercise $5$A$-3($Algo$)$ Cost Behavior; High$-$Low Method $[$L$05-10]$

Hoi Chong Transport, Limited, operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven

$165,000$ kilometers during a year, the average operating cost is $12\mathrm{.}9$ cents per kilometer. If a truck is driven only $110,000$ kilometers

during a year, the average operating cost increases to $16\mathrm{.}2$ 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 $137,000$ kilometers during a year, what total operating cost would you expect to be incurred?

Complete this question by entering your answers in the tabs below.

Express the variable and fixed costs in the form $Y=a+bx.($Do not round your intermediate calculations. Round the Variable

cost per kilometer to $3$ decimal places.$)$

$Y=$