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How many passenger-segments are needed for northwest wings

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Reference no: EM132541797

Northwest Wings Fishing Expeditions provides charter air service from Seattle Washington to remote fishing villages in southern Alaska. The CFO is working on the budget for February 2020 and uses same period comparables to complete the analysis. Average ticket price per passenger each way (passenger-segment) is $355. The airline has one 15-passenger aircraft and is capable of 40 flight-segments per month.

Actual results from February 2020 are provided below

Question 1: How many passenger-segments are needed for Northwest Wings to achieve breakeven? (Basic CVP analysis)

Question 2: At what percent of capacity would the airline need to operate to achieve $25,000 net income after tax? (Target pro?t analysis)

Reference no: EM132541797

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