Now, we explore the role of managerial accounting to support this decision. Estimate the salary cost function for Delta. Despite the fact you can choose between some feasible drivers, please use Revenue Passenger Miles for this part of the case. Use the High Low method. Estimate the salary cost function for JetBlue. Use the high low method. What conclusion can you make out of the comparison of both cost functions? Maybe it the method. Please redo 3 and 4 by using simple linear regression? Did the result of your analysis change? Can Delta be successful on the new segment? Is the strategy aligned with the microeconomic structure of Delta? (THIS IS A VERY RELEVANT QUESTION) Some years after Deltas case situation, salaries were no longer the highest cost for Delta. Fuel prices increased dramatically after 2001. How can you deal with this new profitability threat from a cost management perspective? If costs cannot come down, how can we improve the profitability of a firm such as Delta? While answering this question remember the components of a profit function.