Break$-$Even Analysis

The general formula for calculating break$-$even units is

Break$-$Even Units $=$ Total Fixed Costs $/($ Unit Selling Price $$ Unit Variable Cost $)$

For airlines, costs are mainly fixed, variable cost is negligible, and break$-$even is calculated for load factor instead of units. The formula for calculating break$-$even load factor is

Break$-$Even Load Factor $=$ Cost per Available Seat Mile $/$ Yield per Passenger Mile

Question $5$

By how much would a $6\%$ increase in compensation raise the CASM for each aircraft? Compensation is currently $$140,000$ per aircraft per quarter. Each aircraft flies $1,800$ miles per day, has $30$ seats, and flies $80$ days per quarter.