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Required information EX 6-30 (Static) High-Low Method; Tour Company (LO 6-1, 6-2, 6-5) [The following information applies to the questions displayed below.] Rio Bus Tours
Required information EX 6-30 (Static) High-Low Method; Tour Company (LO 6-1, 6-2, 6-5) [The following information applies to the questions displayed below.] Rio Bus Tours has incurred the following bus maintenance costs during the recent tourist season. [The rea/ is Brazil's national monetary unit. On the day this exercise was written, the rea/ was equivalent in value to 0.2545 U.S. dollar.] EX 6-30 (Static) Part 1: Rio Bus Tours has incurred the following bus maintenance costs... 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. Use the high-low method to estimate the variable cost per tour mile traveled and the fixed cost per month. Note: Round "Variable cost per tour mile" to 3 decimal places
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