Given the outcome of the previous modeling, Rise is concerned about making sure they can make...
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Given the outcome of the previous modeling, Rise is concerned about making sure they can make a profit while not upsetting their aircraft count or losing their gate space. Up until the breakeven analysis, Rise had been flying planes in a uniform distribution between their minimum of 13 and maximum of 25. They would like to take a deeper dive into these numbers to see how often they should profit, and what the optimal stocking policy (flites per day) would be to make sure they profit. (Include the distribution graphs in this analysis) 1. How often do they fly less than 20 planes a day? 2. How often do they fly only 50% of their aircraft? 3. What's the optimal number they should be flying based on the uniform demand and break-even number of 13? Assume all flites are booked to the optimal level solved for above. Assume the daily 100,000 fixed cost is divided evenly by the MEAN number of flites per day (15) 6,700 Given the outcome of the previous modeling, Rise is concerned about making sure they can make a profit while not upsetting their aircraft count or losing their gate space. Up until the breakeven analysis, Rise had been flying planes in a uniform distribution between their minimum of 13 and maximum of 25. They would like to take a deeper dive into these numbers to see how often they should profit, and what the optimal stocking policy (flites per day) would be to make sure they profit. (Include the distribution graphs in this analysis) 1. How often do they fly less than 20 planes a day? 2. How often do they fly only 50% of their aircraft? 3. What's the optimal number they should be flying based on the uniform demand and break-even number of 13? Assume all flites are booked to the optimal level solved for above. Assume the daily 100,000 fixed cost is divided evenly by the MEAN number of flites per day (15) 6,700
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To answer your questions I will perform a deeper analysis based on the given information Lets assume that the demand for flights follows a uniform distribution between 13 and 25 flights per day 1 To d... View the full answer
Related Book For
Managerial Accounting An Integrative Approach
ISBN: 9780999500491
2nd Edition
Authors: C J Mcnair Connoly, Kenneth Merchant
Posted Date:
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