During the past year, the high and low use of three different resources for Bearskin 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:

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.

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Total Cost ($) Resource Airplane Flight Hours Airplane depreciation: High Low 28,000,000 28,000,000 46,000 24,000 Fuel: 46,000 24,000 High 463,818,000 241,992,000 Low Airplane maintenance: High Low 46,000 24,000 17,972,000 10,492,000