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Rio Bus Tours has incurred the following bus maintenance costs during the recent tourist season. (The realis Brazil's national monetary unit. On the day this
Rio Bus Tours has incurred the following bus maintenance costs during the recent tourist season. (The realis Brazil's national monetary unit. On the day this exercise was written, the real was equivalent in value to 0.2545 U.S. dollar.) Month November December January February March April Miles Traveled by Tour Buses 15,000 17,400 19,800 24,000 31,500 13,500 Cost 18,600 real 18,900 19,050 19,500 20,880 18,000 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 44,000 tour miles are driven
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