• AeroTech Engines manufactures aircraft engines and wants to optimize its operational costs.
• Data Provided:
  • March: Total Costs: $2,000,000, Number of Engines Produced: 400
  • September: Total Costs: $2,500,000, Number of Engines Produced: 500
• Expected Deliverables:
  • Apply the High-Low Method to find the variable cost per engine produced and fixed costs.
  • Establish a cost formula.
  • Estimate the total costs if production is scaled to 550 engines.
  • Evaluate how changes in production volume might affect operational efficiency and cost per unit.