• Zenith Airlines is reviewing its operational costs related to the number of flights.
• Data Collected:
  • January: Total Costs: $2,500,000, Flights: 500
  • June: Total Costs: $3,000,000, Flights: 600
• Tasks:
  • Determine the variable cost per flight and fixed costs using the High-Low Method.
  • Develop a cost equation.
  • Predict the total costs for 700 flights.
  • Discuss the potential impact of increased fuel prices on overall costs.