Post a New Question

math

posted by .

Estimating a cost function, high-low method. 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?

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. math

    One of the world's largest stained-glass windows is at Kennedy International Airport in New York. It is a rectangle with a height to length ratio of 2 to 25. If the window is 24 feet high, how long is it?
  2. Cost Accounting

    Estimating a cost function, high-low method?
  3. Accounting

    I am not even sure where to get started on this. 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 …
  4. math

    am not even sure where to get started on this. 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 …
  5. accounting

    Estimating a cost function, high-low method. 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 …
  6. accounting

    Estimating a cost function, high-low method. 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 …
  7. Accounting

    The Fairport Machine Shop wants to develop a cost estimating equation for its monthly cost of electricity. It has the following data: Cost of Electricity (Y) $13,000 $15,000 $17,000 $14,500 Direct Labor-Hours (X) 1,500 1,700 2,000 …
  8. History

    13.)With over eight million people, New York City is the most heavily populated city in the U.S. Between 1800 and 1900, the population of New York increased from about 80,000 to over three million people. In the years after the Civil …
  9. algebra

    The airline cost for x passengers, measured in thousands of passengers, to travel round trip from New York to Atlanta is given by c(x)=^0.3x+1 where (c)x is measured in millions of dollars and x>0 Find the airline’s cost for 10,000 …
  10. FINANCIAL MANAGEMENT

    11-16 NPV and IRR John’s Publishing Company, a new service that writes term papers for college students, provides 11-page term papers from a list of more than 500 topics. Each paper will cost $7.50 and is written by a graduate in …

More Similar Questions

Post a New Question