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Question TWO (60 points) Bus tours Company has incurred the following bus maintenance costs during the tourist season. Miles traveled by buses. (x) Maintenance Costs
Question TWO (60 points) Bus tours Company has incurred the following bus maintenance costs during the tourist season. Miles traveled by buses. (x) Maintenance Costs (7) January 4900 38375 February 3500 38025 March 3900 42275 April 3750 42850 May 4600 43075 June 5100 43975 July 6500 47550 August 4750 42975 September 4750 43350 October 4350 42700 November 7500 46025 December 7250 47200 Required: A. Use the high-low method to estimate the variable costs per one mile driven, and the total fixed costs. (40 points) B. Predict the level of maintenance costs that will incurred when 8.000 tour miles are driven. (20 points)
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