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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

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

14,700

20,500 real

December

17,200

18,700

January

19,700

18,850

February

23,800

19,300

March

31,300

20,500

April

13,300

17,800

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 42,000 tour miles are driven.

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