Question
4 Exercise 6-30 High-Low Method; Tour Company (LO 6-1, 6-2, 6-5) 1 points Rio Bus Tours has incurred the following bus maintenance costs during
4 Exercise 6-30 High-Low Method; Tour Company (LO 6-1, 6-2, 6-5) 1 points Rio Bus Tours has incurred the following bus maintenance costs during the recent tourist season. (The real is Brazil's national monetary unit. On the day this exercise was written, the real was equivalent in value to 0.2545 U.S. dollar.) Miles Traveled by Tour Buses Cost 11,400 real Month November 8,500 eBook December 10,600 11,600 January 12,700 11,700 February 15,000 12,000 March 20,000 12,500 Print April 8,000 11,000 References 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Develop a formula to express the cost behavior exhibited by the company's maintenance cost. (Round "Variable cost per tour mile" to 3 decimal places.) Maintenance cost per month = real + real X < Required 1 Required 3 >
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