Question
Resource Airplane Flight Total Cost Hours Airplane depreciation: High 44,000 $ 18,600,000 Low 28,000 $ 18,600,000 Fuel: High 44,000 445,896,000 Low 28,000 283,752,000 Airplane maintenance:
Resource Airplane Flight Total Cost
Hours
Airplane depreciation:
High 44,000 $ 18,600,000
Low 28,000 $ 18,600,000
Fuel:
High 44,000 445,896,000
Low 28,000 283,752,000
Airplane maintenance:
High 44,000 15,952,000
Low 28,000 12,168,000
Required:
Use the high-low method to answer the following questions. If an answer is zero, enter "0". If required, round your answers to nearest dollar.
1.What is the variable rate for airplane depreciation?
What is the fixed cost for airplane depreciation?
$
2.What is the cost formula for airplane depreciation?
Total cost of airplane depreciation = $
3.What is the variable rate for fuel?
$per flight hour
What is the fixed cost for fuel?
$
4.What is the cost formula for fuel?
Total cost of fuel = $xNumber of airplane flight hours
5.What is the variable rate for airplane maintenance?
$per flight hour
What is the fixed cost for airplane maintenance?
$
6.What is the cost formula for airplane maintenance?
Total cost of airplane maintenance = $
+ ( $Number of airplane flight hours
)
7.Using the three cost formulas that you developed, predict the cost of each resource in a month with 36,000 airplane flight hours. (Note: Do not round intermediate calculations.)
Total cost of airplane depreciation$Total cost of fuel$Total cost of airplane maintenance$
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