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		13,950			17,900		real
December		16,700			18,200
January		19,450			18,350
February		23,300			18,800
March		30,800			20,450
April		12,800			17,300

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 37,000 tour miles are driven.

Use the high-low method to estimate the variable cost per tour mile traveled and the fixed cost per month. (Round "Variable cost per tour mile" to 3 decimal places.)

Variable cost per tour mile		real
Fixed cost per month		real

Develop a formula to express the cost behavior exhibited by the companys maintenance cost. (Round "Variable cost per tour mile" to 3 decimal places.)

Maintenance cost per month =

real

+

real X

Predict the level of maintenance cost that would be incurred during a month when 37,000 tour miles are driven.

Maintenance cost

real