Hoi Chong Transport, Ltd operates a fleet of delivery trucks in Singapore. The company has...
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Hoi Chong Transport, Ltd operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven 107,000 kilometres during a year, the average operating cost is 12 502 cents per kilometre. If a truck is driven only 72,000 kilometres during a year, the average operating cost increases to 147 cents per kilometre (The Singapore dollar is the currency used in Singapore.) Required: 1. Using the high-low method, estimate the variable and fixed cost elements of the annual cost of truck operation (Round the "Variable cost" to 5 decimal places. Round "Fixed cost" to 2 decimal places.) Variable cost Fixed cost per kilometro per year 2. Express the variable and fixed costs in the form Ya+bx. (Round the "Variable cost" to 5 decimal places. Round "Fixed cost" to 2 decimal places.) Y- 2. Express the variable and fixed costs in the form Y= 3 + bx (Round the "Variable cost" to 5 decimal places. Round "Fixed cost" to 2 decimal places.) 3. If a truck were driven 82,000 kilometres during a year, what total cost would you expect to be incurred? (Do not round intermediate calculations. Round "Total annual cost" to 2 decimal places.) Total annual cost
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