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 company landed

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 company landed 3 new contract clients, increasing projected flight miles by 20%, above the 280,000 base case level, to what level could variable costs rise and the operation remain at a financial breakeven level?

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