Reference no: EM132502519

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                               $ 18,000,000

Low                                      28,000                             $18,000,000

Fuel:

High                                      44,000                          $445,896,000

Low                                        28,000                      $ 283,752,000

Airplane maintenance:

High                                         44,000                        $16,032,000

Low                                           28,000                      $12,008,000

Required:

If required, round calculations and answers to nearest dollar.

Question 1: Total annual cost of airplane depreciation = _______x $_________

Total annual cost of fuel = $ ×

Total annual cost of airplane maintenance = ( x $ ) + ( $ × )

Question 2: What is cost of each resource in a year with 489,000 airplane flight hours.

Total annual cost of airplane depreciation?

Total annual cost of fuel ?

Total annual cost of airplane maintenance ?