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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 13,950 20,450 real December 16,700 18,200 January 19,450 18,350 February 23,300 18,800 March 30,800 20,450 April 12,800 17,300 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 _____ real Fixed cost per mile _____ real 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.) Maintenance cost per mile = ____ real + _____ real X 3. Predict the level of maintenance cost that would be incurred during a month when 37,000 tour miles are driven. Maintenance cost _____ real
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