Question: Annual Fixed Costs = $840,000 Variable Costs = $6.00/flight mile Revenue Rate = $9.00/flight mile Breakeven level = 280,000 flight miles If the actual flight

Annual Fixed Costs = $840,000

Variable Costs = $6.00/flight mile

Revenue Rate = $9.00/flight mile

Breakeven level = 280,000 flight miles

If the actual flight miles were 12% below the base case breakeven level of 280,000 flight miles, what fixed cost reduction would be required to keep operation at a financial breakeven level?

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