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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 real was equivalent in value to 0.6158 of a Canadian dollar.) Required: Use the high-low method to estimate the variable cost per tour kilometre travelled and the fixed cost per month. Develop a formula to express the cost behaviour exhibited by the company's maintenance cost. Predict the level of maintenance cost that would be incurred during a month when 22,000 tour kilometres are driven. (Remember to express your answer in terms of the real.)
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