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Rio Bus Tours has incurred the following bus maintenance costs during the recent tourist season. (The real is Brazils national monetary unit. On the day

Rio Bus Tours has incurred the following bus maintenance costs during the recent tourist season. (The real is Brazils national monetary unit. On the day this exercise was written, the real was equivalent in value to 0.2545 U.S. dollar.)

Month Miles Traveled by Tour Buses Cost
November 15,300 18,800 real
December 17,600 19,100
January 19,900 19,250
February 24,200 19,700
March 31,700 20,900
April 13,700 18,200

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 companys maintenance cost. 3. Predict the level of maintenance cost that would be incurred during a month when 46,000 tour miles are driven.

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