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Required Information [The following information soplies to the questions disployed below.] Caiman Distribution Partners is the Brazilian distribution company of a U.S.consumer products firm. Inflation

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Required Information [The following information soplies to the questions disployed below.] Caiman Distribution Partners is the Brazilian distribution company of a U.S.consumer products firm. Inflation in Brazil hes 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 $1,442,083 All variable Supervision 221,000 $ 139.00 Fixed Truck expense 1.192.ee $ 205,00 Fixed Building leases 862,000 $ 549.00 Fixed Utilities 203.00 $189.000 Fixed Warehouse labor 835,290 $ 159.000 Fixed Equipment leases 757.ee $ 585.000 Fixed Data processing equipment 952,200 All fixed 837,083 $ 372.ced Fixed Total $7,299.00 Other 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 1 2 3 4 5 G 7 Cases 243,000 333,000 244.000 483, ese 319,00 346.000 376,eee 470,000 370,000 432, eee 387, ese 471,eae Price Index 125 114 12e 115 122 124 136 Operating costs $5.699.163 5,106,662 5.949.929 5,927.641 5,939.159 6,643,388 5.918,519 6,133,892 6,126,154 6,186,649 6,288,823 6,362,279 11 le 11 12 148 136 139 131 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.) Estimate of operating cust

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