Question 5 Cost Behavior; High-Low Method Jan Chen Transport, Ltd., operates a fleet of delivery trucks in Brampton. The company has determined that if a truck is driven 210,000 kilometers during a year, the average operating cost is 22.8 cents per kilometer. If a truck is driven only 140,000 kilometers during a year, the average operating cost increases to 26.8 cents per kilometer. Required: 1. Using the high-low method, estimate the variable and fixed cost elements of the annual cost of the truck operation Using the high-low method, estimate the fixed cost of admitting patients per month and the variable cost of admissions per patient. Activity Cost Computing the fixed cost using the high level of activity: Total fixed cost 16,80,000