1. Changing the Cost Formula for a Month to the Cost Formula for a Year

   During the past year, the high and low use of three different resources for Fly High Airlines occurred in July and April. The resources are airplane depreciation, fuel, and airplane maintenance. The number of airplane flight hours is the driver. The total costs of the three resources and the related number of airplane flight hours are as follows:

   Resource	Airplane Flight Hours			Total Cost
   Airplane depreciation:
   High	44,000			$ 18,200,000
   Low	28,000			$ 18,200,000
   Fuel:
   High	44,000			445,896,000
   Low	28,000			283,752,000
   Airplane maintenance:
   High	44,000			16,000,000
   Low	28,000			12,352,000

   Required:

   If required, round calculations and answers to nearest dollar.

   1. Develop an annual cost formula for airplane depreciation.

   Total annual cost of airplane depreciation = x ( $ )

   Develop an annual cost formula for fuel.

   Total annual cost of fuel = $ x

   Develop an annual cost formula for airplane maintenance.

   Total annual cost of airplane maintenance = ( blank x blank) + ( $blank )

   2. Using the three annual cost formulas that you developed, predict the cost of each resource in a year with 490,000 airplane flight hours.

   Total annual cost of airplane depreciation	$
   Total annual cost of fuel	$
   Total annual cost of airplane maintenance	$