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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. (Thereal 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 14,550 19,950 real
December 17,100 18,600
January 19,650 18,750
February 23,700 19,200
March 31,200 19,950
April 13,200 17,700

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.)

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 41,000 tour miles are driven.

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