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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 moneta unit. On the day this exercise was written, the real was equivalent in value to .269 U.S. dollar.) Month November December January February March April Miles Traveled by Tour Buses 8,500 10,600 12,700 15,000 20,000 8,000 Cost 11,400 real 11,600 11,700 12,000 12,500 11,000 Required: 1. Use the high-low 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 22,000 tour miles are driven. Complete this question by entering your answers in the tabs below. 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.) Maintenance cost per month = real + real x
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