Average to break even each week

Reference no: EM13259599

Second City Airlines operates 35 scheduled round-trip flightseach week between New York and Chicago. It charges a fixed one-wayfare of $200 per passenger. Second City Airlines can carry 150passengers per one-way flight. Fuel and other flight-related costsare $5,000 per flight. On-flight meal and refreshment cost average$5 per passenger. Flight crew, ground crew, advertising, andother administrative expenditures for the New York-to Chicago routeamount to $400,000 each week.

Required:

How many passengers must each of the 70 one-way flights have on average to break even each week?

If the load factor is 60% on all flights (that is, the flightsare 60% full), how many flights must Second City Airlines operateon this route to earn a total profit of $500,000 per week?

Are fuel costs variable or fixed?

What is the variable cost to Second City Airlines for one additional passenger on a flight if the passenger takes a seat thatwould otherwise go empty?

Reference no: EM13259599

Questions Cloud

How does not decrease the magnitude of transfer function : If we have a transfer function T(s) = |Z(s)|/|P(s)| and we had a pole at s=-500; Then the magnitude would be sqrt(500^2 + w). So how does that not decrease the magnitude of the transfer function at frequencies below 500

Explain how can ethidium ions cause mutations in dna : How can ethidium ions cause mutations in DNA and what type of interactions exists between the DNA and ethidium ions?

Manufacturing overhead rate-overapplied overhead : What is the amount of under- or overapplied overhead at December 31? Prepare the adjusting entry to assign the under- or overapplied overhead for the year to cost of goods sold.

Appropriate assumptions about cost behavior : For this information, make appropriate assumptions about cost behavior and assume that direct labor costs vary directly with thenumber of units produced. How many units must the company sell inorder to earn a pretax profit of $500,000?

Average to break even each week : How many passengers must each of the 70 one-way flights have on average to break even each week?

Explain what is its solubility under atmospheric conditions : What is its solubility under atmospheric conditions? (The partial pressure of CO2 in air is 0.00055 atm.) Assume that CO2 obeys Henry's law.

Explain what mass of kno3 will crystalize out of solution : what mass of KNO3 will crystalize out of solution if exactly 9.0x10^2g of its saturated solution at 75c is cooled to 25c

Find the electric force on each charge for n : Point charges, each of value √(4πε0)C, are located at the vertices of an n-sided regular polygon circumscribed by a circle of radius a. Find the electric force on each charge for (a) n=3, (b) n=4, (c) & n=6.

Less withdrawals : How do you find the 'less withdrawals' for the statement of owners equity?

User Account

All Pages