Answer:
(a) $92,650; $107,520
(b) $1.09 per mile; $1.12 per mile
Explanation:
(a) March:
Total cost to operate the aircraft:
= Fixed cost + Variable cost
= $79,900 + ($0.15 × 85,000 miles)
= $79,900 + $12,750
= $92,650
April:
Total cost to operate the aircraft:
= Fixed cost + Variable cost
= $93,120 + ($0.15 × 96,000 miles)
= $93,120 + $14,400
= $107,520
(b)
Total costs per mile to operate the fleet in March:
= Total cost in March ÷ Miles flew in March
= $92,650 ÷ 85,000
= $1.09 per mile
Total costs per mile to operate the fleet in April:
= Total cost in April ÷ Miles flew in April
= $107,520 ÷ 96,000
= $1.12 per mile
