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Brazilia 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
Brazilia 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 .5092 U.S. dollar.) Miles Traveled Maintenance by Tour Buses Cost 19,950 real 18,600 18,750 19,200 19,950 17,700 Month January February March April 14,550 17,100 19,650 23,700 31,200 13,200 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.) Variable cost per tour mile Fixed cost per month real real 2. Develop a formula to express the cost behavior exhibited by the company's maintenance cost. (Round Variable cost per tour mile" to 3 decimal places.) Maintenance cost per month- real + real X 3. Predict the level of maintenance cost that would be incurred during a month when 41,000 tour miles are driven. Maintenance cost real
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