Business, 05.05.2020 21:46, kiarasanchez17

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 comma 000 and 2 comma 000 round-trips per year. The records indicate that a helicopter that has made 1 comma 000 round-trips in the year incurs an average operating cost of $350 per round-trip, and one that has made 2 comma 000 round-trips in the year incurs an average operating cost of $300 per round-trip.
a. 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.
b. Give examples of costs that would be included in a and in b.
c. If Reisen Travel expects each helicopter to make, on average, 1,300 round-trips in the coming year, what should its estimated operating budget for the helicopter fleet be?

Answers: 1

Show answers

Other questions on the subject: Business

Business, 22.06.2019 00:10, laya35

What are the forecasted levels of the line of credit and special dividends? (hints: create a column showing the ratios for the current year; then create a new column showing the ratios used in the forecast. also, create a preliminary forecast that doesn’t include any new line of credit or special dividends. identify the financing deficit or surplus in this preliminary forecast and then add a new column that shows the final forecast that includes any new line of credit or special dividend.) now assume that the growth in sales is only 3%. what are the forecasted levels of the line of credit and special dividends?

Answers: 1

continue

Business, 22.06.2019 04:50, danny123421

Harwood company uses a job-order costing system that applies overhead cost to jobs on the basis of machine-hours. the company's predetermined overhead rate of $2.50 per machine-hour was based on a cost formula that estimates $240,000 of total manufacturing overhead for an estimated activity level of 96,000 machine-hours. required: 1. assume that during the year the company works only 91,000 machine-hours and incurs the following costs in the manufacturing overhead and work in process accounts: compute the amount of overhead cost that would be applied to work in process for the year and make the entry in your t-accounts. 2a. compute the amount of underapplied or overapplied overhead for the year and show the balance in your manufacturing overhead t-account. 2b. prepare a journal entry to close the company's underapplied or overapplied overhead to cost of goods sold.

Answers: 1

continue

Business, 22.06.2019 06:30, silas99

Selected data for stick’s design are given as of december 31, year 1 and year 2 (rounded to the nearest hundredth). year 2 year 1 net credit sales $25,000 $30,000 cost of goods sold 16,000 18,000 net income 2,000 2,800 cash 5,000 900 accounts receivable 3,000 2,000 inventory 2,000 3,600 current liabilities 6,000 5,000 compute the following: 1. current ratio for year 2 2. acid-test ratio for year 2 3. accounts receivable turnover for year 2 4. average collection period for year 2 5. inventory turnover for year 2

Answers: 2

continue

Business, 22.06.2019 20:50, fernandoramirez086

Happy foods and general grains both produce similar puffed rice breakfast cereals. for both companies, thecost of producing a box of cereal is 45 cents, and it is not possible for either company to lower their productioncosts any further. how can one company achieve a competitive advantage over the other?

Answers: 1

continue

Do you know the correct answer?

Reisen Travel offers helicopter service from suburban towns to John F. Kennedy International Airport...