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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 15,150 18,700 real
December 17,500 19,000
January 19,850 19,150
February 24,100 19,600
March 31,600 20,350
April 13,600 18,100

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 45,000 tour miles are driven.

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