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Caiman Distribution Partners is the Brazilian distribution company of a U.S. consumer products firm. Inflation in Brazil has made bidding and budgeting difficult for marketing

Caiman Distribution Partners is the Brazilian distribution company of a U.S. consumer products firm. Inflation in Brazil has made bidding and budgeting difficult for marketing managers trying to penetrate some of the country's rural regions. The company expects to distribute 450,000 cases of products in Brazil next month. The controller has classified operating costs (excluding costs of the distributed product) as follows.

Account Operating Cost Behavior
Supplies $ 637,000 All variable
Supervision 219,000 $ 152,000 Fixed
Truck expense 1,350,000 $ 189,000 Fixed
Building leases 845,000 $ 557,000 Fixed
Utilities 228,000 $ 137,000 Fixed
Warehouse labor 858,000 $ 128,000 Fixed
Equipment leases 744,000 $ 584,000 Fixed
Data processing equipment 951,000 All fixed
Other 861,000 $ 395,000 Fixed
Total $ 6,693,000

Although overhead costs were related to revenues throughout the company, the experience in Brazil suggested to the managers that they should incorporate information from a published index of Brazilian prices in the distribution sector to forecast overhead in a manner more likely to capture the economics of the business.

Following instructions from the corporate offices, the controller's office in Brazil collected the following information for monthly operations from last year.

Month Cases Price Index Operating Costs
1 290,000 115 $5,699,149
2 339,000 110 5,806,648
3 291,000 111 5,849,915
4 387,000 124 5,927,627
5 388,000 121 5,939,145
6 366,000 118 6,043,374
7 385,000 119 5,918,505
8 442,000 132 6,133,878
9 385,000 137 6,126,140
10 400,000 133 6,186,635
11 411,000 133 6,208,809
12 443,000 146 6,362,265

These data are considered representative for both past and future operations in Brazil.

b. Use the high-low method to compute an estimate of operating costs assuming that 450,000 cases will be shipped next month. (Round variable cost to 5 decimal places. Round intermediate calculations and final answer to nearest whole dollar amount.)

Note: I have tried an answer of 6,392,603 and 6,392,604 and they were both marked as incorrect. I think something is wrong in my rounding, but I can't figure it out. Please help!

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