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Roche Travel offers helicopter service from suburban towns to John F. Kennedy International Airport in New York City. Each of its 11 helicopters makes between
Roche Travel offers helicopter service from suburban towns to John F. Kennedy International Airport in New York City. Each of its 11 helicopters makes between 1,000 and 2,000 round-trips per year. The records indicate that a helicopter that has made 1,000 round-trips in the year incurs an average operating cost of $350 per round-trip, and one that has made 2,000 round-trips in the year incurs an average operating cost of $300 per round-trip Read the requirements. Requirement 1. Using the high-low method, estimate the linear relationship y- a+ bx, where y is the total annual operating cost of a helicopter and X is the number of round-trips it makes to JFK airport during the year. Requirement 2. Give examples of costs that would be included in a and in b. Begin by selecting which type of costs "a and "b" represent, then select the costs that correlate with that cost type, use each cost only once. Requirement 3. If Roche Travel expects each helicopter to make, on average, 1,200 round-trips in the coming year, what should its estimated operating budget for the helicopter fleet be? Roche Travel's estimated operating budget for all 11 helicopters in the fleet combined should be
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