The carrasco company has provided you the following information pertaining to its defined benefit pension plan that was adopted on january 1, 2018: the service cost was $750,000 during 2018 and $1,125,000 during 2019. the contribution to the pension plan was $600,000 on december 31, 2018 and $1,200,000 on december 31, 2019. the actuarially determined discount rate and the expected return on plan assets are both 10%. the actual return on plan assets was 10.5%. retirement benefits pertaining to years of service prior to 2018 were not granted to the employees.

Exercise 2-12 cost behavior; high-low method [lo2-3, lo2-4] speedy parcel service operates a fleet of delivery trucks in a large metropolitan area. a careful study by the company’s cost analyst has determined that if a truck is driven 120,000 miles during a year, the average operating cost is 11.6 cents per mile. if a truck is driven only 80,000 miles during a year, the average operating cost increases to 13.6 cents per mile. required: 1.& 2. using the high-low method, estimate the variable and fixed cost elements of the annual cost of truck operation. (round the "variable cost per mile" to 3 decimal places.)