Exercise 5A-3 Cost Behavior; High Low Method

Correct re htps:/ Help Save & Ch Exercise 5A-3 Cost Behavior, High-Low Method [LO5-10] Hot Chong Transport, Ltd, operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven 120,000 klometers during a year, the average operating cost is 135 cents per kilometer If a truck is driven only 80,000 kilometers during a year the average operating cost increases to 159 cents per kilometer Required: 1 Using the high Jow method, estimate the variable operating cost per kilometer and the annual fxed operating cost associated with the fleet of trucks enences 2. Express the variable and foxed costs in the form Y-a bx 3 If a truck were driven 100,000 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. Required 1 Required 2 Required 3 Using the high-low method, estimate the variable operating cost per kilometer and the annual fixed operating cost associated with the fleet of trucks. (Do not round your intermediate calculations. Round the Variable cost per kilometer to 3 decimail places.) Variable cost per klometer FSF F7 FB 5 6 8 9