Fuel $7,000 Flight crew salaries 3,200 Airplane depreciation 3,480 Variable cost per passenger—business class 140 Variable cost per passenger—economy class 120 Round-trip ticket price—business class 800 Round-trip ticket price—economy class 300 It is assumed that the fuel, crew salaries, and airplane depreciation are fixed, regardless of the number of seats sold for the round-trip flight. How many business class and economy class seats would be sold at the break-even point?
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| Fuel | $7,000 |
| Flight crew salaries | 3,200 |
| Airplane depreciation | 3,480 |
| Variable cost per passenger—business class | 140 |
| Variable cost per passenger—economy class | 120 |
| Round-trip ticket price—business class | 800 |
| Round-trip ticket price—economy class | 300 |
It is assumed that the fuel, crew salaries, and airplane depreciation are fixed, regardless of the number of seats sold for the round-trip flight.
How many business class and economy class seats would be sold at the break-even point?
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- eBook Fuel Flight crew salaries Airplane depreciation Variable cost per passenger-business class Variable cost per passenger-economy class Round-trip ticket price-business class Round-trip ticket price-economy class It is assumed that the fuel, crew salaries, and airplane depreciation are fixed, regardless of the number of seats sold for the round-trip flight. Break-Even Sales and Sales Mix for a Service Company Zero Turbulence Airline provides air transportation services between Los Angeles, California, and Kona, Hawaii. A single Los Angeles to Kona round-trip flight has the following operating statistics: Total number of seats at break-even Business class seats at break-even $6,439 4,932 2,329 Economy class seats at break-even 65 Check My Work 2 more Check My Work uses remaining. 50 555 270 a. Compute the break-even number of seats sold on a single round-trip flight for the overall enterprise product, E. Assume that the overall product mix is 20% business class and 80% economy class…Zero Turbulence Airline provides air transportation services between Los Angeles, California, and Kona, Hawaii. A single Los Angeles to Kona round-trip flight has the following operating statistics: Line Item Description Amount Fuel $6,698 Flight crew salaries 5,130 Airplane depreciation 2,422 Variable cost per passenger—business class 55 Variable cost per passenger—economy class 45 Round-trip ticket price—business class 565 Round-trip ticket price—economy class 305 It is assumed that the fuel, crew salaries, and airplane depreciation are fixed, regardless of the number of seats sold for the round-trip flight. a. Compute the break-even number of seats sold on a single round-trip flight for the overall company product, M. Assume that the overall product mix is 10% business class and 90% economy class tickets.Total number of seats at break-even fill in the blank 1 of 1 seats b. How many business class and economy class seats would be sold at the break-even…Question scope: Short term decision making Indigo Airlines provides its passengers with the option of joining their club, which entitles them to use club facilities at any Malaysian airport. Club members have access to a private lounge and restaurant, as well as discounts on food and drinks. Due to the pandemic, Indigo had been facing a decline in profit, thus their club has shown consistent loss. The recent statement are as follows: Sales revenue RM150,000 Variable expenses: (70,000) (40,000) (25,000) Food and drinks Personnel Variable overhead Contribution margin Fixed expenses: Club building Depreciation Supervisory salary Airport fees General overhead (allocated) Profit (loss) 15,000 (30,000) (25,000) (15,000) (10,000) (65,000) The variable fees for all clubs can be avoided if the club stops producing. Indigo Airlines, on the other hand, has agreed to keep the club house as supervisors will no longer be employed if the club closes, and Indigo will no longer pay airport fees.…
- VIOH BUuget Tor jahuary, 2022 Variable costs: Indirect Material (5 TL per DL hour) 5,000 Indirect Labor (4 TL per DL hour) 4,000 Maintenance (1 TL per DL hour) 1,000 Utilities (0,5 TL per DL hour) 500 10,500 Fixed costs: Supervisory 2,000 Depreciation 2,000 Rent 1,000 Insurance 500 5,500 Total MOH Costs 16,000 Red Rose Company planned to produce 4,000 boxes of Red Rose Delights in January 2022. Each box requires 15 minutes of direct labour (1/4 DL hour). Managerial accountant prepared the MOH budget for January (presented above). Actual production was 3,600 boxes and fixed overhead costs were exactly the same, however actual variable overhead costs are: indirect material 4,900 TL; indirect labor 3,400 TL; maintenance 1,100 TL; utilities 550 TL. Supervisor can control all costs other than supervisory, depreciation and insurance. Prepare a flexible manufacturing overhead budget with 200 DL-hour increments. The relevant range is 800 DL hours and 1,200 DL hours.5 In an effort to increase profits, Pegasus Airlines is thinking about dropping several flights that appear to be unprofitable. A typical income statement for one round-trip of one such flight (flight 482) is as follows: Ticket revenue (175 seats x 40% occupancy × $200 ticket price). Variable expenses ($15 per person) Contribution margin Flight expenses: Salaries, flight crew Flight promotion Depreciation of aircraft Fuel for aircraft Liability insurance Salaries, flight assistants Baggage loading and flight preparation Overnight costs for flight crew and assistants at destination Total flight expenses Net operating loss $ 14,000 1,050 12,950 $ 1,800 750 1,550 5,800 4,200 1,500 1,700 300 17,600 $ (4,650) 100.0% 7.5 92.5% The following additional information is available about flight 482: a. Members of the flight crew are paid fixed annual salaries, whereas the flight assistants are paid based on the number of round trips they complete. b. One-third of the liability insurance is a…< Break-Even Sales and Sales Mix for a Service Company Yellow Dove Airways provides air transportation services between Portland and Minneapolis. A single Portland to Minneapolis round-trip flight has the following operating statistics: Fuel and landing fees Flight crew salaries Airplane depreciation Variable cost per passenger-business class Variable cost per passenger-economy class Round-trip ticket price-business class Round-trip ticket price-economy class $7,670 Business class 5,875 Check My Work 2,775 40 30 510 It is assumed that the fuel and landing fees, crew salaries, and airplane depreciation are fixed, regardless of the number of seats sold for the round-trip flight. 280 a. Compute the break-even number of seats sold on a single round-trip flight for the overall product. Assume that the overall product is 10% business class and 90% economy class tickets. Round your answer to whole number. Total number of seats at break-even L b. How many business class and economy class seats…
- SCRUMPTIOUS CUPCAKESProfit and loss accountfor the year ended 30 April 20202020£SalesSales 220,000Cost of sales 120,000Gross Profit 100,000ExpensesSalaries 24,000Other Fixed cost 4,800Distribution 3,000Advertising 4,500Rent 13,200AHUtilities 3,600Other Cost 4,00057,100Operating Profit 42,900 SCRUMPTIOUS CUPCAKESBalance Sheetas at 30 April 20202020£Fixed assetsIntangible assets -Tangible assets 35,000Investments -35,000Current assetsStocks 3,000Debtors 10,000Cash at bank and in hand 6,30019,300Written ReportsCreditors: amounts falling duewithin one year (11,300)Net Current Assets 8,000Total assets less currentliabilities 43,000Net Assets 43,000Capital and reservesCalled up share capital 100Profit and loss account 42,900Shareholders' funds 43,000 please calculate the folliwing ratios: Profitability Ratios – Gross Profit Margin, Net Profit Margin and ROCE● Liquidity – Current Test and Acid Test● Gearing● Activity/Performance – Stock Turnover, Debtors’ Collection Period and AssetTurnover…Break-Even Sales and Sales Mix for a Service Company Zero Turbulence Airline provides air transportation services between Los Angeles, California; and Kona, Hawaii. A single Los Angeles to Kona round-trip flight has the following operating statistics: Fuel $14,373 Flight crew salaries 11,009 Airplane depreciation 5,198 Variable cost per passenger—business class 70 Variable cost per passenger—economy class 55 Round-trip ticket price—business class 540 Round-trip ticket price—economy class 285 It is assumed that the fuel, crew salaries, and airplane depreciation are fixed, regardless of the number of seats sold for the round-trip flight. If required round the answers to nearest whole number. a. Compute the break-even number of seats sold on a single round-trip flight for the overall product, E. Assume that the overall product is 20% business class and 80% economy class seats. Total number of seats at break-even fill in the blank 1 seats b. How many business…| Dally Inc. has the following information about its truck fleet miles and operating costs: Year 2016 2017 Miles 400,000 428,000 560,000 Operating Costs $256,000 $254,000 $320,000 2018 What is the best estimate of total operating costs if the expected fleet mileage for 2019 is 482,000 miles? Round your answer to the nearest dollar. a. $288,800 b. $267,667 с. $289,200 d. $125,000 e. $192,800 f. $308,480 g. $281,000 h. None of the above. 3.
- Break-Even Sales and Sales Mix for a Service Company Zero Turbulence Airline provides air transportation services between Los Angeles, California; and Kona, Hawaii. A single Los Angeles to Kona round-trip flight has the following operating statistics: Fuel $8,798 6,739 Flight crew salaries Airplane depreciation 3,183 Variable cost per passenger-business class 65 Variable cost per passenger-economy class 50 Round-trip ticket price-business class 545 Round-trip ticket price-economy class 320 It is assumed that the fuel, crew salaries, and airplane depreciation are fixed, regardless of the number of seats sold for the round-trip flight. If required round the answers to nearest whole number. a. Compute the break-even number of seats sold on a single round-trip flight for the overall product, E. Assume that the overall product is 20% business class and 80% economy class seats. Total number of seats at break-even seats b. How many business class and economy class seats would be sold at the…Break-Even Sales and Sales Mix for a Service Company Zero Turbulence Airline provides air transportation services between Los Angeles, California, and Kona, Hawaii. A single Los Angeles to Kona round-trip flight has the following operating statistics: Fuel $14,941 Flight crew salaries 11,444 Airplane depreciation 5,405 Variable cost per passenger—business class 65 Variable cost per passenger—economy class 50 Round-trip ticket price—business class 525 Round-trip ticket price—economy class 320 It is assumed that the fuel, crew salaries, and airplane depreciation are fixed, regardless of the number of seats sold for the round-trip flight. a. Compute the break-even number of seats sold on a single round-trip flight for the overall enterprise product, E. Assume that the overall product mix is 10% business class and 90% economy class tickets. Total number of seats at break-even fill in the blank 1 seats b. How many business class and economy class seats would be…Chapter 6 Cost-Volume-Profit Analysis 297 Make a Decision Cost-Volume-Profit Analysis for Service Companier MAD 6-1 Analyze Global Air's cost-volume-profit relationships Obj. 6 Global Air is considering a new flight between Atlanta and Los Angeles. The average fare per seat for the flight is $760. The costs associated with the flight are as follows: Fixed costs for the flight: Crew salaries..... Operating costs . Aircraft depreciation.. $ 5,000 50,000 25,000 $80,000 Total...... Variable costs per passenger: Passenger check-in Operating costs .... Total... $ 20 100 $120 The airline estimates that the flight will sell 175 seats. a. Determine the break-even number of passengers per flight. b. Based on your answer in (a), should the airline add this flight to its schedule? c. How much profit should each flight produce? d. What additional issues might the airline consider in this decision? Obi 6
