Prepare an Estimate for the variable and fixed cost Elements of the annual cost of truck operation , using the high- low method . 12 marks ) Units Costs High level 105, 000 KIT $ 1, 197, 000 LOW level 70,000 KITTY $938, 000 Change 35, 000 KITTY $ 259, 000 Express the variable and fixed costs in the form "Y" = a + by^ . ('1 mark ) Unit variable cost : $259, 000/35, 000 km = 7. 4 cents per kin Fixed cost : 1 , 197, 000 - 17. 4 cents per unit* 105 , 000 km ) Fixed cost : 1 , 197, 000 - 777, 000 = 420, 000 Total cost . "" = 420, 000 + 7. 4X` Calculate the Expected total cost of driving a van 90, 000 kilometers during a year . ( 1 mark ) Y" = 420.000 + 7. 4 ( 30, 000) Y" = 420,000 + 656, 000 ` = $1, 086, 000