The mortise company has assembled the following data pertaining to certain costs that cannot be easily identified as either fixed or variable. mortise has heard about a method of measuring cost functions called the high-low method and has decided to use it in this situation.
month cost hours
january $40,000 3,600
february 38,500 3,000
march 36,280 3,300
april 38,000 3,500
may 69,850 5,850
june 45,000 4,250
requirement a. what is the slope coefficient?
the slope coefficient is $
.
requirement b. what is the constant for the estimated cost equation?
the constant is $
.
requirement c. what is the estimated cost function for the above data?
= $
+ $
requirement d. what is the estimated total cost at an operating level of 3,100 hours?
the estimated total cost at an operating level of 3,100 hours is $

Let's consider a hypothetical airline, mudlarks airlines. on one of its flights, precious records show that about 15% of people who had tickets for the flights did not take the flight. there are 120 seats on the plane. 1. how many tickets should mudlarks airlines sell for this flight? 2. as an added consideration, suppose that tickets on this flight cost a flat rate of $250. in addition, mudlarks airlines must give any traveler who purchased a seat for the flight, but who cannot travel due to overbooking, a $400 certificate for their trouble. does this change your answer in question one? now, suppose that mudlarks airlines forms a partnership itch another airline, puffin air. their agreement allocates 100 seats on the flight to mudlarks airlines and another 20 seats to puffin air. the 2 airlines sell tickets for the flight independently of each other. 3. assuming the same 15% no show percent for each airline, how many tickets should each sell?