I-17.03
Flights
Cost
January
7
$
23,180
February
14
43,780
March
11
29,880
April
18
48,600
May
21
55,200
June
16
46,410
July
8
26,600
August
12
36,108
September
6
22,200
October
18
47,628
Health Source Hospital (HSH) has a standing contract
with an air charter service to deliver critical
medications throughout its service network.
The
contract calls for a fixed monthly payment plus a set of
variable charges based on each flight's specific
characteristics.
The first table below includes
information about total monthly cost and the number
of flights.
Below the table is a computational aid for estimating
the fixed and variable cost components via the high-
low method.
Use the pick lists associated with each
boxed area to select the high and low volumes.
The
remainder of the tables will automatically complete
based on your selections.
After correctly making each
selection, the variable and fixed cost amounts will turn
green.
Carefully review the underlying logic of the
calculations.
