TOUGHB Calo lator Carging the Cost Formula for Month to the Cost Formula for a Y

Question

TOUGHB Calo lator Carging the Cost Formula for Month to the Cost Formula for a Year During the past year, the high and low use of three different resources for Fly High Arines occurred in July and Agrid. The resources are arplane depreciation, uel a airplane mantenance. me number of airplane Sght hours "s the drve". The total costs of the three resources and the related number of "pian·fight hen-'" Airplane Flight Total Cost Airplane depreciation: 18,000,800 44,000 45895,000 3,752,000 16,168.000 2,240,000 if required, round caliculations and anwers to 1. Develop arnual cost formula for srplane deprecaton CF-53 Pause F10 F11 F7 F8 F5 4 5 7

Explanation / Answer

Airplane depreciation is a Fixed cost as it remain constant irrespective of number of airplane hours.

Fuel is a variable cost as it remain same in per unit   [445896000/44000 or 283752000/28000 = $ 10134 per hour]

Fixed cost at highest activity : Total cost -variable cost

                    = 16168000- [44000*245.5]

                    = 16168000 - 10802000

                  = 5366000

a)Total annual cost for airplane depreciation : 1*18,000,000

b)Total annual cost for fuel :x*10134   where as x = number of hours

c)Total cost for airplane maintenance : (245.5*x)+(1*5366000)

2)A)Total annual cost of airplane depreciation : $ 18,000,000

Total annual cost of fuel:10134*485000 = $ 4,914,990,000

Total annual cost of airplane maintenance :[245.5*485000)+(1*5366000)

                =119067500+5366000  

                 = 124,433,500

Airplane maintenance

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