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In: AccountingExercise 6A-3 Cost Behavior; High-Low Method [LO6-10]Hoi Chong Transport, Ltd., operates a fleet of delivery...Exercise 6A-3 Cost Behavior; High-Low Method [LO6-10]Hoi Chong Transport, Ltd., operates a fleet of delivery trucksin Singapore. The company has determined that if a truck is driven96,000 kilometers during a year, the average operating cost is 10.3cents per kilometer. If a truck is driven only 64,000 kilometersduring a year, the average operating cost increases to 11.5 centsper kilometer.Required:1. Using the high-low method, estimate the variable operatingcost per kilometer and the annual fixed operating cost associatedwith the fleet of trucks.2. Express the variable and fixed costs in the form Y = a +bX.3. If a truck were driven 80,000 kilometers during a year, whattotal operating cost would you expect to be incurred?