# Hoi Chong Transport- Limited- operates a fleet of dellvery trucks in S.docx

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Hoi Chong Transport, Limited, operates a fleet of dellvery trucks in Singapore. The company has determined that if a truck is driven 162.000 kilometers during a year, the average operating cost is 13.2 cents per kllometer. If a truck is driven only 108 , 000 kilometers during a year, the average operating cost increases to 16.6 cents per kllometer. Required: 1. Using the high-low method, estimate the variable operating cost per kilometer and the annual fixed operating cost associated with the fleet of trucks. 2. Express the variable and fixed costs in the form Y = a + b X . 3. If a truck were driven 135,000 kllometers 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, estlimate the variable operating cost per kilometer and the annual fixed operating cost associated with the fleet of trucks. (Do not round your intermediate calculations. Round the Variable coit per kilometer to 3 decimal placesi) Express the variable and fixed costs in the form Y = a + b X . (Do not round your intermediate calculations. Round the Variable cost per kilometer to 3 decimal places.) If a truck were driven 135,000 kilometers during a year, what total operating cost would you expect to be incurred? (Do not round intermediate calculations.) .

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### Hoi Chong Transport- Limited- operates a fleet of dellvery trucks in S.docx

• 1. Hoi Chong Transport, Limited, operates a fleet of dellvery trucks in Singapore. The company has determined that if a truck is driven 162.000 kilometers during a year, the average operating cost is 13.2 cents per kllometer. If a truck is driven only 108 , 000 kilometers during a year, the average operating cost increases to 16.6 cents per kllometer. Required: 1. Using the high-low method, estimate the variable operating cost per kilometer and the annual fixed operating cost associated with the fleet of trucks. 2. Express the variable and fixed costs in the form Y = a + b X . 3. If a truck were driven 135,000 kllometers 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, estlimate the variable operating cost per kilometer and the annual fixed operating cost associated with the fleet of trucks. (Do not round your intermediate calculations. Round the Variable coit per kilometer to 3 decimal placesi) Express the variable and fixed costs in the form Y = a + b X . (Do not round your intermediate calculations. Round the Variable cost per kilometer to 3 decimal places.) If a truck were driven 135,000 kilometers during a year, what total operating cost would you expect to be incurred? (Do not round intermediate calculations.)
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