accounting
posted by jen .
Estimating a cost function, highlow 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 roundtrips per year. The records indicate that a helicopter that has made 1,000
roundtrips in the year incurs an average operating cost of $300 per roundtrip, and one that has made 2,000
roundtrips in the year incurs an average operating cost of $250 per roundtrip.
1. Using the highlow 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 roundtrips 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 roundtrips in the coming year,
what should its estimated operating budget for the helicopter fleet be?
Respond to this Question
Similar Questions

accounting
The accounting records of NuTronics, Inc., include the following information for the year ended December 31, 2011. Dec. 31 Jan. 1 Inventory of materials $ 24,000 $ 20,000 Inventory of work in process 8,000 12,000 Inventory of finished … 
Cost Accounting
Estimating a cost function, highlow method? 
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 roundtrips … 
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 roundtrips … 
math
Estimating a cost function, highlow 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 roundtrips … 
accounting
Estimating a cost function, highlow 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 roundtrips … 
Economics
2. Lucy quits a $50,000 job to open her waffle business. She makes $225,000 in revenue from her first year of waffle sales. She pulls $50,000 out of an account that returns 3% interest per year and invests the entire amount in her … 
Fin/571
3. Bell Mountain Vineyards is considering updating its current manual accounting system with a highend electronic system. While the new accounting system would save the company money, the cost of the system continues to decline. The … 
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 LaborHours (X) 1,500 1,700 2,000 … 
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 airlineâ€™s cost for 10,000 …