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September 17, 2014

September 17, 2014

Posted by **Mary** on Sunday, June 15, 2008 at 9:58pm.

Reisen Travel offers helicopter service from suburban towns to John F. Kennedy International Airport in New York City. Each of its 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 in the year incurs an average operating cost of $300 per round-trip, and one that has made 2,000

round-trips in the year incurs an average operating cost of $250 per round-trip.

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.

2. Give examples of costs that would be included in a and in b.

3. If Reisen 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?

How would you determine the most important cost driver when estimating cost functions in the case of Reisen Travel? Identify the cost driver and how it would impact Reisen’s operating budget.

- math133 -
**Nathaniel**, Thursday, July 30, 2009 at 9:07pmMeasure the distance of the diagonal (from one corner to the opposite corner) of the screen on your computer monitor to the nearest tenth of a centimeter or sixteenth of an inch. Measure the height of the screen along the vertical as well. Use the Pythagorean theorem to find the width along the horizontal

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