1) Develop an annual cost formula for airplane depreciation
Airplane depreciation is a fixed costs as the airplane depreciation remains same irrespective of the change in airplane flight hours.
Total annual cost of airplane depreciation= 12*$18300000
Develop an annual cost formula for fuel
Fuel variable cost= $445896000/44000= $10134 per flight hour
Total annual cost of fuel= $10134*Annual number of airplane flight hours
Develop an annual cost formula for airplane depreciation
Change in total cost= $15904000-11640000= $4264000
Change in airplane flight hours= 44000-28000= 16000 hours
Variable cost per unit= Change in total cost/Change in airplane flight hours
= $4264000/16000= $267 per flight hour
Fixed cost= Total cost-Variable cost
= $15904000-(44000*$267 )= $4156000
Total annual cost of airplane maintenance= (12*$4156000)+($267*Annual number of airplane flight hours)
2)
Total annual cost of airplane depreciation (12*$18300000) | $219600000 |
Total annual cost of fuel ($10134*480000) | $4864320000 |
Total annual cost of airplane maintenance (12*$4156000+$267*480000) | $178032000 |
eBook Calculator Print Item Changing the Cost Formula for a Month to the Cost Formula for...
Changing the Cost Formula for a Month to the Cost Formula for a Year During the past year, the high and low use of three different resources for Fly High Airlines occurred in July and April. The resources are airplane depreciation, fuel, and airplane maintenance. The number of airplane fight hours is the driver. The total costs of the three resources and the related number of airplane flight hours are as follows: Airplane Flight Resource Hours Total Cost Airplane depreciation:...
Changing the Cost Formula for a Month to the Cost Formula for a Year During the past year, the high and low use of three different resources for Fly High Airlines occurred in July and April. The resources are airplane depreciation, fuel, and airplane maintenance. The number of airplane flight hours is the driver. The total costs of the three resources and the related number of airplane flight hours are as follows: Resource Airplane Flight Hours Total Cost Airplane depreciation:...
Calor Changing the Cost Forms for a Months to the Cost Formula for a Year During the past year, the high and low use of three different resources for Fly High Airlines occurred in July and April. The resources are airplane depreciation, fuel, and airplane maintenance. The number of airplane flight hours is the driver. The total costs of the three resources and the related number of airplane flight hours are as follows: Resource Airplane Flight Hours Total Cost Airplane...
Changing the Cost Formula for a Month to the Cost Formula for a Year During the past vear, the high and low use of three different resources for Fly High Airfines occurred in July and April. The resources are airplane depreciation, fuel, and airplane maintenance. The number of airplane flight hours is the driver. The total costs of the three resources and the related number of airplane flight hours are as follows: Airplane Flight Resource Hours Total Cost Airplane depreciation:...
Please help with these ASAP. I don't understand what I am doing wrong. Changing the Cost Formula for a Month to the Cost Formula for a Year During the past year, the high and low use of three different resources for Fly High Airlines occurred in July and April. The resources are airplane depreciation, fuel, and airplane maintenance. The number of airplane flight hours is the driver. The total costs of the three resources and the related number of airplane...
eBook Calculator High-Low Method, Cost Formulas During the past year, the high and low use of three different resources for Fly High Airlines occurred in July and April. The resources are airplane depreciation, fuel, and airplane maintenance. The number of airplane flight hours is the driver. The total costs of the three resources and the related number of airplane flight hours are as follows: Airplane Flight Hours Resource Total Cost Airplane depreciation: High 44,000 $ 18,700,000 Low 28,000 $ 18,700,000...
Calculator High-Low Method, Cost Formulas During the past year, the high and low use of three different resources for Fly High Airlines occurred in July and April. The resources are airplane depreciation, fuel, and airplane maintenance. The number of airplane hours is the driver total costs of the three resources and the related number of airplane flight hours are as follows: Resource Airplane Flight Hours Total Cost Airplane depreciation: High 44,000 Low $ 18,400,000 $ 18,400,000 28,000 Fuel: High LOW...
High-Low Method, Cost Formulas During the past year, the high and low use of three different resources for Fly High Airlines occurred in July and April. The resources are airplane depreciation, fuel, and airplane maintenance. The number of airplane flight hours is the driver. The total costs of the three resources and the related number of airplane flight hours are as follows: Airplane Flight Resource Hours Total Cost Airplane depreciation: High 44,000 $ 18,800,000 Low 28,000 $ 18,800,000 Fuel: High...
High-Low Method, Cost Formulas During the past year, the high and low use of three different resources for Fly High Airlines occurred in July and April. The resources are airplane depreciation, fuel, and airplane maintenance. The number of airplane flight hours is the driver. The total costs of the three resources and the related number of airplane flight hours are as follows: Resource Airplane Flight Hours Total Cost Airplane depreciation: High 44,000 $ 18,700,000 Low 28,000 $ 18,700,000 Fuel: High...
High-Low Method, Cost Formulas During the past year, the high and low use of three different resources for Fly High Airlines occurred in July and April. The resources are airplane depreciation, fuel, and airplane maintenance. The number of airplane flight hours is the driver. The total costs of the three resources and the related number of airplane flight hours are as follows: Resource Airplane Flight Hours Total Cost Airplane depreciation: High 44,000 $ 18,100,000 Low 28,000 $ 18,100,000 Fuel: High...