Question
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
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: Airplane Flight Hours Resource Total Cost Airplane depreciation: High 44,000 $ 18,300,000 Low 28,000 $ 18,300,000 Fuel: High 44,000 445,896,000 Low 28,000 283,752,000 Airplane maintenance High 44,000 16,032,000 Low 28,000 12,120,000 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 fuels X Develop an annual cost formula for airplane maintenance. Total annual cost of airplane maintenance = 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 Airplane depreciation Fuel Annual number of airplane flight hours
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started