Radig Travel offers helicopter service from suburban towns to John F. Kennedy International Airport in New York City. Each of its fourteen helicopters makes between 1,100 and 2,200 ​round-trips per year. The records indicate that a helicopter that has made 1,100 ​round-trips in the year incurs an average operating cost of $500 per​ round-trip, and one that has made 2,200 ​round-trips in the year incurs an average operating cost of $400 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.     =   +     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" =   "b" =               Requirement 3. If Radig Travel expects each helicopter to​ make, on​ average, 1,600 ​round-trips in the coming​ year, what should be its estimated operating budget for the helicopter​ fleet?   Radig Travel's estimated operating budget for all 14 helicopters in the fleet combined should be

Talbot Industries manufactures two models of wireless headset: TI-12 and TI-28. Each product requires time on a single machine. The machine has a monthly capacity of 540 hours. Total market demand for the two products is limited to 2,000 units of TI-12 and 1,000 units of TI-28 monthly. Talbot is currently producing and selling 1,500 TI-12 models and 780 TI-28 models each month. Cost and machine-usage data for the two products are shown in the following spreadsheet, which analysts at Talbot use for production planning purposes: Price Less variable costs per unit Material Labor Overhead Contribution margin per unit Fixed costs Manufacturing Marketing and administrative Machine hours per unit Machine hours used Machine hours available Quantity produced Maximum demand Profit TI-12 $ 80 Required A Required B 23 29 8 $ 20 0.1

Solar Engines manufactures solar engines for tractor - trailers. Given the fuel savings available, new orders for 175 units have been made by customers requesting credit. The variable cost is $11, 200 per unit, and the credit price is $13, 750 each. Credit is extended for one period. The required return is 1.7 percent per period. If Solar Engines extends credit, it expects that 35 percent of the customers will be repeat customers and place the same order every period forever and the remaining customers will be one time orders. Calculate the NPV of the decision to grant credit. (Do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.)

The Anderson Buffet offers an all you can eat buffet meal for $29 per person. The restaurant employs ten salaried employees. Rent for the building, employee salaries, and other fixed costs for the resturant are $122,400 per month when the restaurant serves meals up to 14,100 guests in any given month it would need to hire two additional serves and two additional kitchen staff or an fixed cost of 18,000 per month. The variable cost of food is $13 per guest. Requirement 1: What is the resturant's cost equation for estimated cots if the number of guests to be served is up to 14,100 guests per month? y= X + -- -

Vernon Cabins is a small motel chain located near state and national parks. Each property is made up of separate cabins. The chain has 10 properties with an average of 15 cabins at each property. In year 1, the occupancy rate (the number of rooms filled divided by the number of rooms available) was 80 percent, based on a 180-day season. The properties are closed from late fall until early spring. The average rate was $225 per night per cabin. The basic unit of operation is the “night,” which is one cabin occupied for one night. The operating income for year 1 is as follows. Vernon Cabins Operating Income Year 1 Sales revenue   Lodging $ 4,860,000 Incidentals 475,200 Forfeited deposits 129,600 Total revenues $ 5,464,800 Costs   Labor $ 1,748,000 Incidentals 451,200 Miscellaneous 86,400 Utilities, etc. 95,000 Depreciation 550,000 Management 120,000 Marketing 230,000 Property taxes 1,640,000 Total costs $ 4,920,600 Operating profit $ 544,200 Other…

Flow Cruiseline offers nightly dinner cruises departing from several cities on the East Coast of the United States including Charleston, Baltimore, and Alexandria. Dinner cruise tickets sell for $60 per passenger. Flow Cruiseline's variable cost of providing the dinner is $30 per passenger, and the fixed cost of operating the vessels (depreciation, salaries, docking fees, and other expenses) is $270,000 per month. The company's relevant range extends to 15,000 monthly passengers. The breakeven sales are 9,000 tickets sold. a. Compute the operating leverage factor when Flow Cruiseline sells 10,000 dinner cruises. b. If volume increases by 8%, by what percentage will operating income increase? c. If volume decreases by 6%, by what percentage will operating income decrease? a. Compute the operating leverage factor when Luxury Cruiseline sells 10,000 dinner cruises. (Round your answer to one decimal place.) First, identify the formula, then compute the operating leverage factor.…

Solar Engines manufactures solar engines for tractor-trailers. Given the fuel savings available, new orders for 135 units have been made by customers requesting credit. The variable cost is $9,600 per unit, and the credit price is $11,750 each. Credit is extended for one period. The required return is 1.8 percent per period. If Solar Engines extends credit, it expects that 20 percent of the customers will be repeat customers and place the same order every period forever and the remaining customers will be one-time orders. Calculate the NPV of the decision to grant credit. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) O Answer is complete but not entirely correct. NPV $ 5,386,717.95

Cola Food Services Company operates and services soft drinks vending machines located in restaurants, gas stations, factories, etc., in four Southern states. The machines are rented from the manufacturer. In addition Cola must rent space occupied by its machines. The following expense and revenue relationships pertain to a contemplated expansion program of 20 machines. Fixed monthly expenses follow: Machine rental: 20 machines @$43.50                                    $870 Space rental: 20 locations @$28.80                                          $576 Part-time wages to service the additional 20 machines          $1,454 Other fixed costs                                                                        $100 Total monthly fixed costs                                                       $3000  Other data follow:                                                                Per unit                     per $100 of sales Selling price…

The Calling Company has three departments that occupy floor space in the 50,000 square feet building it rents for $500,000 annually. Department A occupies 25,000 sq ft; Department B occupies 10,000 sq ft; and Department C occupies 15,000 sq ft. How much annual rent expense should be allocated to Department B?

Without calculations, determine the contribution margin at the break-even point. Break-even point $