Please help with requirement 3 Roy Travel offers helicopter service from suburban towns to John F. Kennedy International Airport in New York City. Each of its nine helicopters makes between 1,350 and 2,100 round-trips per year. The records indicate that a helicopter that has made 1,350 round-trips in the year incurs an average operating cost of $450 per round-trip, and one that has made 2,100 round-trips in the year incurs an average operating cost of $350 per round-trip. Read the requirements LOADING... . Requirement 1. 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. y = $378,000 + $170 X Requirement 2. Give examples of costs that would be included in a and in b. Begin by selecting which type of costs "a" and "b" represent, then select the costs that correlate with that cost type, use each cost only once. "a" = Fixed costs "b" = Variable costs Depreciation Baggage handling Insurance Fuel Salaries Landing fees Requirement 3. If Roy Travel expects each helicopter to make, on average, 1,700 round-trips in the coming year, what should be its estimated operating budget for the helicopter fleet? Roy Travel's estimated operating budget for all 9 helicopters in the fleet combined should be . Enter any number in the edit fields and then click Check Answer. All parts showing Clear All Check Answer Requirements 1. 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. 2. Give examples of costs that would be included in a and in b. 3. If Roy Travel expects each helicopter to make, on average, 1,700 round-trips in the coming year, what should be its estimated operating budget for the helicopter fleet? PrintDone

Please help with requirement 3 Roy Travel offers helicopter service from suburban towns to John F. Kennedy International Airport in New York City. Each of its nine helicopters makes between 1,350 and 2,100 round-trips per year. The records indicate that a helicopter that has made 1,350 round-trips in the year incurs an average operating cost of $450 per round-trip, and one that has made 2,100 round-trips in the year incurs an average operating cost of $350 per round-trip. Read the requirements LOADING... . Requirement 1. 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. y = $378,000 + $170 X Requirement 2. Give examples of costs that would be included in a and in b. Begin by selecting which type of costs "a" and "b" represent, then select the costs that correlate with that cost type, use each cost only once. "a" = Fixed costs "b" = Variable costs Depreciation Baggage handling Insurance Fuel Salaries Landing fees Requirement 3. If Roy Travel expects each helicopter to make, on average, 1,700 round-trips in the coming year, what should be its estimated operating budget for the helicopter fleet? Roy Travel's estimated operating budget for all 9 helicopters in the fleet combined should be . Enter any number in the edit fields and then click Check Answer. All parts showing Clear All Check Answer Requirements 1. 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. 2. Give examples of costs that would be included in a and in b. 3. If Roy Travel expects each helicopter to make, on average, 1,700 round-trips in the coming year, what should be its estimated operating budget for the helicopter fleet? PrintDone

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Please help with requirement 3

Roy

Travel offers helicopter service from suburban towns to John F. Kennedy International Airport in New York City. Each of its

nine

helicopters makes between

1,350

and

2,100

round-trips per year. The records indicate that a helicopter that has made

1,350

round-trips in the year incurs an average operating cost of

$450

per round-trip, and one that has made

2,100

round-trips in the year incurs an average operating cost of

$350

per round-trip.

Read the

requirements

Requirement 1. 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.

$378,000

$170

Requirement 2. Give examples of costs that would be included in a and in

Begin by selecting which type of costs

"a"

and

"b"

represent, then select the costs that correlate with that cost type, use each cost only once.

"a" =	Fixed costs	"b" =	Variable costs
Depreciation	Baggage handling
Insurance	Fuel
Salaries	Landing fees

Requirement 3. If

Roy

Travel expects each helicopter to make, on average,

1,700

round-trips in the coming year, what should be its estimated operating budget for the helicopter fleet?

Roy Travel's estimated operating budget for all 9 helicopters in the fleet combined should be

Enter any number in the edit fields and then click Check Answer.

All parts showing

Clear All

Check Answer

Requirements

1.	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.
2.	Give examples of costs that would be included in a and in b.
3.	If Roy Travel expects each helicopter to make, on average, 1,700 round-trips in the coming year, what should be its estimated operating budget for the helicopter fleet?

PrintDone

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