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DATA INPUT
Miles Traveled
Month by Tour Buses Cost
November 12,750 17,100 real
December 15,900 17,400
January 19,050 17,550
February 22,500 18,000
March 30,000 18,750
April 12,000 16,500
SOLUTION
1. Variable cost per tour mile traveled and fixed cost per month using the
high-low method:
Variable maintenance cost per tour mile =
High Low Difference
costs (in real) 18,750 - 16,500 2,250 r
r denotes real, Brazil's national currency
2. Cost formula:
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