Brazilia Bus Company has incurred the following bus maintenance

costs during the last quarter:

Month Miles Maintenance Costs

April 12,000 16,500 real

May 30,000 18,750

June 22,500 18,000

Note: The Real is the unit of Brazilian currency.

Estimate the variable maintenance cost per mile traveled and the

fixed monthly maintenance cost for the firm, using the hi-lo method.

1 Answer: ________ variable cost per mile

________ fixed cost per month

If the estimate of the miles to be driven in July is 16,000 miles, what

will you estimate total maintenance costs to be in that month?

Answer: __________ real