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Rio Bus Tours has incurred the following bus maintenance costs during the recent tourist season. (The real is Brazil's national monetary unit. On the day
Rio Bus Tours has incurred the following bus maintenance costs during the recent tourist season. (The real is Brazil's national monetary unit. On the day this exercise was written, the realwas equivalent in value to .269 U.S. dollar.) 5 8 Miles Traveled by Month November December January February March April Tour Buses Cost 12,900 16,000 19,100 22,600 30,100 12,100 17,200 real 17,500 17,650 18,100 19,300 16,600 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 30,000 tour miles are driven 2 2 2
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