# Brazilia Bus Tours has incurred the following bus maintenance costs during the recent tourist season. (The real

## Question:

Brazilia Bus Tours has incurred the following bus maintenance costs during the recent tourist season. (The real is Brazilâ€™s national monetary unit. On the day this exercise was written, the real was equivalent in value to .5092 U.S. dollar.)

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 companyâ€™s maintenance cost.
3. Predict the level of maintenance cost that would be incurred during a month when 34,000 tour miles are driven. (Remember to express your answer in terms of the real.)
4. Build a spreadsheet: Construct an Excel spreadsheet to solve all of the preceding requirements. Show how the solution will change if the following information changes: in March there were 32,000 miles traveled and the cost was 20,000real.

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