Question: High-Low Method, Cost Formulas Refer to the information for Fly High Airlines above.
Required: Use the high-low method to answer the following questions.
1. What is the variable rate for airplane depreciation? The fixed cost?
2. What is the cost formula for airplane depreciation?
3. What is the variable rate for fuel? The fixed cost?
4. What is the cost formula for fuel?
5. What is the variable rate for airplane maintenance? The fixed cost?
6. What is the cost formula for airplane maintenance?
7. Using the three cost formulas that you developed, predict the cost of each resource in a month with 36,000 airplane flight hours.