EXERCISE I-8 Cost Behavior; High-Low Method [LO1-4, LO1-5] 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 TAKE TWO Required: 1. Using the high-low method, estimate the variable and fixed cost elements of the annual cost of the Average truck operation. Express the variable and fixed costs in the form Y= a + bX. 2. 3. If a truck were driven 80,000 kilometers during a year, what total cost would you expect to be cost mile incurred