Rio Bus Tours has incurred the following bus maintenance costs during the recent tourist season.

Required:
1. Use the high-low method to estimate the variable cost per tour mile traveled and the fixed cost per month.
2. Develop a formula to express the cost behavior exhibited by the company’s maintenance cost.
3. Predict the level of maintenance cost that would be incurred during a month when 22,000 tour miles are driven. (Remember to express your answer in terms of the real.)

Transcribed Image Text:

Month November December January.. February March April ************** Miles Traveled by Tour Buses 8,500 10,600. 12,700 15,000 20,000 8,000 wwwwww Cost 11,400 real 11,600 11,700 12,000 12,500 11,000