For this Case Study, complete the three requirements below:
- ABC Airlines has calculated the total costs (fixed and variable) for the passenger service flights between Los Angeles, California and Orlando, Florida. The two methods used were the high-low method and the least squared method. Compare and contrast these two methods. Which one is the most reliable? What affect does an outlier have on the high-low method? Which method would you recommend to ABC?
- List and discuss ten possible cost drivers for an aircraft manufacturing firm.
- Refer to Case 6-46 at the end of Chapter 6.
- Compute requirement 2, except you can build or use an existing Excel Spreadsheet to calculate the fixed and variable costs of the airport’s cost behavior pattern.
- Also, complete requirement 4. The spreadsheet must accompany the submission.
For this case study, you will demonstrate your ability to correctly calculate the problem and demonstrate creative thinking by analyzing the case and answering the questions that are intended to interpret the data
Note: Attach is the file of Case 6-46 of Chapter 6. Submit the answer and the Excel spreadsheet as well.