[The following information applies to the questions displayed below.] Calman Distribution Partners is the Brazilian distribution company of a U.S. consumer products firm. Inflation in Brazil has made bidding and budgeting difficult for marketing managers trying to penetrate some of the country's rural regions. The company expects to distribute 450,000 cases of products in Brazil next month. The controller has classified operating costs (excluding costs of the distributed product) as follows. Account Supplies Supervision Truck expense Building leases Utilities Warehouse labor Equipment leases Data processing equipment Other Total Operating Cost $ 350, eee 215, eee 1,200, eee 855,000 215,000 860, eee 760, eee 945, eee 850,00 $6,250, eee Behavior All variable $ 150,00 Fixed $ 199,00 Fixed $ 550, Bee Fixed $ 125, eee Fixed $ 140,00 Fixed $ 680, Bee Fixed All fixed $ 480, eee Fixed Although overhead costs were related to revenues throughout the company, the experience in Brazil suggested to the managers that they should Incorporate Information from a published index of Brazilian prices in the distribution sector to forecast overhead in a manner more likely to capture the economics of the business. Following Instructions from the corporate offices, the controller's office in Brazil collected the following Information for monthly operations from last year. $ Month 1 2 3 MO Cases 345, cee 362, eee 358, eee 380, eee 374, cee 395, eee 367, eee 412,000 398, eee 421, eee 417,00 432,000 Price Index 115 117 118 122 124 125 128 133 133 132 136 139 Operating costs 5,699,139 5,806,638 5,849,905 5,927,617 5,939,135 6,843, 364 5,918,495 6,133,868 6, 126, 130 6,186,625 6, 208, 799 6,362,255 9 1e 11 12 These data are considered representative for both past and future operations in Brazil. b. Use the high-low method to compute an estimate of operating costs assuming that 450,000 cases will be shipped next month. (Round variable cost to 5 decimal places. Round Intermediate calculations and final answer to nearest whole dollar amount.) Estimate of operating cost