b. Use the high-low method to compute an estimate of operating costs assuming that 450,000 cases will be shipped next month. (Round variable cost to 3 decimal places. Round final answer to nearest whole dollar amount.)

Required information [The following information applies to the questions displayed below.] Caiman Distribution Parthers is the Brazilian distribution company of a U.S. consumer products firm. Inflation In Brazil has made bidding and budgeting difficult for marketing managers tryling to penetrate some of the country's rural reglons. The company expects to distribute 450,000 cases of products In Brazll next month. The controller has classified operating costs (excluding costs of the distributed product) as follows. Although overhead costs were related to revenues throughout the company, the experlence In Brazil suggested to the managers that they should Incorporate information from a published Index of Brazilian prices in the distribution sector to forecast overhead in a manner more likely to capture the economics of the business. Following instructions from the corporate offices, the controller's office in Brazil collected the following information for monthly operations from last year. These data are considered representatlve for both past and future operations in Brazll. Required information [The following information applies to the questions displayed below.] Caiman Distribution Parthers is the Brazilian distribution company of a U.S. consumer products firm. Inflation In Brazil has made bidding and budgeting difficult for marketing managers tryling to penetrate some of the country's rural reglons. The company expects to distribute 450,000 cases of products In Brazll next month. The controller has classified operating costs (excluding costs of the distributed product) as follows. Although overhead costs were related to revenues throughout the company, the experlence In Brazil suggested to the managers that they should Incorporate information from a published Index of Brazilian prices in the distribution sector to forecast overhead in a manner more likely to capture the economics of the business. Following instructions from the corporate offices, the controller's office in Brazil collected the following information for monthly operations from last year. These data are considered representatlve for both past and future operations in Brazll