Question
Bonita, Ltd., provides nationwide passenger train service on 21,000 miles of routes. Selected operating data for the latest fiscal year are shown below. Month Fuel
Bonita, Ltd., provides nationwide passenger train service on 21,000 miles of routes. Selected operating data for the latest fiscal year are shown below.
Month | Fuel Expense (000s) | Passengers (000s) | Passenger Miles (000s) | Train Miles (000s) | |||||
---|---|---|---|---|---|---|---|---|---|
October | $21,115 | 2,305 | 466,163 | 3,282 | |||||
November | $22,092 | 2,274 | 492,242 | 3,235 | |||||
December | $21,081 | 2,236 | 361,200 | 3,213 | |||||
January | $16,268 | 2,010 | 385,766 | 3,294 | |||||
February | $22,196 | 2,028 | 483,972 | 3,088 | |||||
March | $26,874 | 2,238 | 484,193 | 3,191 | |||||
April | $26,033 | 2,383 | 497,371 | 3,212 | |||||
May | $24,997 | 2,284 | 494,715 | 3,261 | |||||
June | $23,559 | 2,303 | 551,323 | 3,288 | |||||
July | $25,100 | 2,700 | 578,121 | 3,219 | |||||
August | $25,459 | 2,480 | 580,100 | 3,590 | |||||
September | $26,491 | 2,340 | 460,467 | 3,198 |
Identify the high and low points for each of the three measures.
Passengers | Passenger miles | Train Miles | ||||
---|---|---|---|---|---|---|
High point activity | enter the high point in dollars | enter the high point in dollars | enter the high point in dollars | |||
High point $ | $enter the high point in dollars | $enter the high point in dollars | $enter the high point in dollars | |||
Low point activity | enter the low point in dollars | enter the low point in dollars | enter the low point in dollars | |||
Low point $ | $enter the low point in dollars | $enter the low point in dollars | $enter the low point in dollars |
The above data provide three possible activity measures that could influence fuel expense. Use the high-low method to develop a cost formula for fuel expense for each of the three measures. (Round unit cost to 4 decimal places, e.g. 52.7512 and total cost to 0 decimal places, e.g. 5,275.)
Passengers: | ||||
---|---|---|---|---|
Fuel expense | = | $enter a dollar amount passenger | + | $enter a dollar amount |
Passenger miles: | ||||
Fuel expense | = | $enter a dollar amount passenger mile | + | $enter a dollar amount |
Train Miles: | ||||
Fuel expense | = | $enter a dollar amount train miles | + | $enter a dollar amount |
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