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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 .269 U.S. dollar.) Month Miles Traveled by Tour Buses Cost November 14,100 18,000 real December 16,800 18,300 January 19,500 18,450 February 23,400 18,900 March 30,900 21,000 April 12,900 17,400 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 38,000 tour miles are driven.

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