Saved Exercise 3-7 Cost Behaviour; High-Low Method [LO2] We Deliver operates a fleet of delivery trucks in Halifax. Analysis shows that if a truck is driven 156,000 kilometres during a year, the average operating cost is 12.6 cents ($0.126) per kilometre. If a truck is driven only 104,000 kilometres during a year, the average operating cost increases to 15.6 cents ($0.156) per kilometre. Required: 1. Using the high-low method, estimate the variable and fixed cost elements of the annual cost of truck operation. (Do not round your intermediate calculations. Round the Variable cost per kilometre to 3 decimal places and Fixed cost answer to nearest whole dollar amount.) High level of activity Low level of activity Change Kilometers Driven 156.000 104.000 52.000 5 Total Annual Cost 5 19.656 16,224 3 .432 per kilometer Variable cost per kilometer Ebced cost per year