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Exercise 6-30 High-Low Method; Tour Company (LO 6-1, 6-2, 6-5) Rio Bus Tours has incurred the following bus maintenance costs during the recent tourist season.
Exercise 6-30 High-Low Method; Tour Company (LO 6-1, 6-2, 6-5) Rio 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 0.2545 U.S. dollar.) Miles Traveled by Month Tour Buses Cost November 13.800 17,800 real December 16,600 18,100 January 19,400 18,250 February 23. 200 18,700 March 39,799 19,909 April 12.700 17,200 Required: 1. Use the highlow method to estimate the variable cost per tour mile traveled and the fixed cost per month. 2. Develop a formula to express the cost behavior exhibited by the company's maintenance cost. 3. Predict the level of maintenance cost that would be incurred during a month when 36,000 tour miles are driven. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Use the highlow 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 Required 2 > Required 1 Required 2 Required 3 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.)
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