Cost Accounting

Estimating a cost function, high-low method?
Reisen Travel offers helicopter service from suburban towns to john !@#\$%^&ennedy 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?

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