Homework Help: Cost Accounting

Posted by Amanda on Saturday, May 10, 2008 at 3:20pm.

Estimating a cost function, high-low method?
Reisen Travel offers helicopter service from suburban towns to john F. Kennedy Airport. Each of it's 10 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 has an average operating cost of $300, and one that has made 2,000 round trips has an average operating cost of $250.
1. Estimate the linear relationship y = a+bx, where y is the total annual operating cost of the helicopter and x is the number of round trips.
2. give examples of costs that would be included in a and b
3. if Reisen Travel expects each helicopter to make an aver 1,200 round trips in the comming year, what should its operating budget for the helicopter fleet be?

No one has answered this question yet.

Answer this Question

Related Questions

accounting - Estimating a cost function, high-low method. Reisen Travel offers ...
accounting - Estimating a cost function, high-low method. Reisen Travel offers ...
math - Estimating a cost function, high-low method. Reisen Travel offers ...
Accounting - I am not even sure where to get started on this. Reisen Travel ...
math - am not even sure where to get started on this. Reisen Travel offers ...
Cost accounting - (High-low method) Information about SnoCos’ utility cost ...
budgeting - You are estimating the contractor’s material handling cost as a...
Accounting - Jones Company had 100 units in beginning inventory at a total cost ...
Construction Estimating - Given a Contract Amount o $14,000,000 and an Estimated...
Algebra - Assume it costs Microsoft $4,300 to manufacture 7 Xbox 360s and $8,290...

For Further Reading

First Name:
School Subject:
Answer: