Brazilia Bus Tours has incurred the following bus maintenance costs during the recent tourist season. (The real is Brazils national monetary unit. On the day this exercise was written, the real was equivalent in value to .5092 U.S. dollar.)

Month Miles Traveled by Tour Buses Maintenance Cost November 15,150 20,350 real December 17,500 19,000 January 19,850 19,150 February 24,100 19,600 March 31,600 20,350 April 13,600 18,100

Required:

1.

Use the high-low method to estimate the variable cost per tour mile traveled and the fixed cost per month. (Round "Variable cost per tour mile" to 3 decimal places.)

2.

Develop a formula to express the cost behavior exhibited by the companys maintenance cost. (Round "Variable cost per tour mile" to 3 decimal places.)

3.

Predict the level of maintenance cost that would be incurred during a month when 45,000 tour miles are driven.