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7.14 6 Exercise 6-30 High-Low Method; Tour Company (LO 6-1, 6-2, 6-5) points Rio Bus Tours has incurred the following bus maintenance costs during the
7.14 6 Exercise 6-30 High-Low Method; Tour Company (LO 6-1, 6-2, 6-5) 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 18,900 real Month November 15,450 eBook December 17,700 19,200 January 19,950 19,350 February 24,300 19,800 March 31,800 21,000 References April 13,800 18,300 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 47,000 tour miles are driven
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