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  3. hoi chong transport, limited, operates a fleet of

Hoi Chong Transport, Limited, operates a fleet of delivery trucks in Singapore. The company knows...

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Accounting

Hoi Chong Transport, Limited, operates a fleet of delivery trucks in Singapore. The company knows if a truck is driven 177,000
kilometers during a year, the average operating cost is 12.3 cents per kilometer. If a truck is driven only 118,000 kilometers during a
year, the average operating cost increases to 15.5 cents per kilometer.
Required:
Using the high-low method, estimate the variable operating cost per kilometer and the annual fixed operating cost associated with
the fleet of trucks.
Express the variable and fixed costs in the form Y=a+bx.
If a truck were driven 147,000 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.
Using the high-low method, estimate the variable operating cost per kilometer and the annual fixed operating cost associated
with the fleet of trucks.
Note: Do not round your intermediate calculations. Round the Variable cost per kilometer to 3 decimal places.
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