OBJECTIVE 3 Exercise 3-30 High-Low Method Refer to the information for Luisa Crimini above. Required: 1. Which month represents the high point? The low point? Using the high-low method, compute the variable rate for tanning. Compute the fixed cost per month. 2. 3. Using your answers to Requirement 2, write the cost formula for tanning services Calculate the total predicted cost of tanning services for September for 2,500 appointments using the formula found in cost for September? How much is the total predicted variable cost for September? 4. Requirement 3. Of that total cost, how much is the total fixed 5. CONCEPTUAL CONNECTION Identify and briefly explain any additional issues tha Luisa might be wise to consider when using the high-low method to estimate the costs of her tanning salon. Exercise 3-33 High-Low Method, Cost Formulas Refer to the information for Fly High Airlines above. OBJECTIVE Required: Use the high-low method to answer the following questions. 1. What is the variable rate for airplane depreciation? The fixed cost? 2. What is the cost formula for airplane depreciation? 3. What is the variable rate for fuel? The fixed cost? 4. What is the cost formula for fuel? 5. What is the variable rate for airplane maintenance? The fixed cost? 6. What is the cost formula for airplane maintenance? 7. Using the three cost formulas that you developed, predict the cost of each resource in a month with 36,000 airplane flight hours. e 3-34 Changing the Cost Formula for a Month to the Cost Formula for a Year OBJECTI Refer to the information for Fly High Airlines above. Required: 2. Usin Develop anual cost formulas for airplane depreciation, fuel, and airplane maintenance g the three annual cost formulas that you developed, predict the cost of each resource in a year with 480,000 airline flight hours. OBJECTIVE 3 Exercise 3-30 High-Low Method Refer to the information for Luisa Crimini above. Required: 1. Which month represents the high point? The low point? Using the high-low method, compute the variable rate for tanning. Compute the fixed cost per month. 2. 3. Using your answers to Requirement 2, write the cost formula for tanning services Calculate the total predicted cost of tanning services for September for 2,500 appointments using the formula found in cost for September? How much is the total predicted variable cost for September? 4. Requirement 3. Of that total cost, how much is the total fixed 5. CONCEPTUAL CONNECTION Identify and briefly explain any additional issues tha Luisa might be wise to consider when using the high-low method to estimate the costs of her tanning salon. Exercise 3-33 High-Low Method, Cost Formulas Refer to the information for Fly High Airlines above. OBJECTIVE Required: Use the high-low method to answer the following questions. 1. What is the variable rate for airplane depreciation? The fixed cost? 2. What is the cost formula for airplane depreciation? 3. What is the variable rate for fuel? The fixed cost? 4. What is the cost formula for fuel? 5. What is the variable rate for airplane maintenance? The fixed cost? 6. What is the cost formula for airplane maintenance? 7. Using the three cost formulas that you developed, predict the cost of each resource in a month with 36,000 airplane flight hours. e 3-34 Changing the Cost Formula for a Month to the Cost Formula for a Year OBJECTI Refer to the information for Fly High Airlines above. Required: 2. Usin Develop anual cost formulas for airplane depreciation, fuel, and airplane maintenance g the three annual cost formulas that you developed, predict the cost of each resource in a year with 480,000 airline flight hours
