Exerclse $6$A$-3($Algo$)$ Cost Behavlor; HIgh$-$Low Method $[$LO$6-10]$

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

$135,000$ kilometers during a year, the average operating cost is $14\mathrm{.}5$ cents per kilometer. If a truck is driven only $90,000$ kilometers

during a year, the average operating cost increases to $18\mathrm{.}1$ cents per kilometer.

Requlred:

Using the high$-$low method, estimate the variable operating cost per kilometer and the annual fixed operating cost associated with

the fleet of trucks.

$2$ Express the variable and fixed costs in the form $Y=a+bx.$

If a truck were driven $112,000$ 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 $3$

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 $3$ decimal

places.$)$

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.$)$

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

If a truck were driven $112,000$ kilometers during a year, what total operating cost would you expect to be incurred? $($Do not

round intermediate calculations.$)$