Question: dest Practical Exercise 6.3 Friendly Airways Inc., a small two- plane passenger airline, has asked for your assistance in some basic analysis of its operations.

dest Practical Exercise 6.3 Friendly Airways Inc., a small two- plane passenger airline, has asked for your assistance in some basic analysis of its operations. The planes seat 10 passengers each, and they fly commuters from Friendly's base airport to the major city in the province, Metropolis. Each month, 40 round-trip flights are made. Shown below is a recent month's activity in the form of a cost-volume-profit income statement. Fare revenues (400 fares) $50,000 Variable costs Fuel $17.900 Snacks and drinks 1,400 Landing fees 2.000 Supplies and forms 1.200 22.500 Contribution margin 27.500 Fixed costs Depreciation Salaries Advertising 3.000 15.000 2.250 Airport hangar fees Operating income 1.750 22.000 $ 5,500 Instructions: a. Calculate the break-even point in (1) dollars and (2) number of fares. 4 b. Determine the contribution margin at the break-even point

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Friendly Airways Inc., a small two- plane passenger airline, has asked for your assistance in some basic analysis of its operations. The planes seat 10 passengers each, and they fly commuters from...

Hello all I need help in answering the 3rd picture at the bottom that is about net income. it is the question "How much would net income be impacted by this change? " Thank you for your time. ER...

Condays the small the planner wihasked for your website of its operation. Both plane w 10 peach, and they port to the majority in the Metropolis. Each month 40 Pound trots are made motivity the...

Please answer correctly thank you Question 4 of 9 0.92/1 Comh Airways, Inc., a small two plane passenger airline, has asked for your assistance in some basic analysis of its operations. Both planes...

wild horse airways, Inc., a small, two plane passenger airline, has asked for your assistance in some basic analysis of its operations. Both planes seat 1 0 passengers each, and they fly commuters...

Comh Airways, Inc., a small two plane passenger airline, has asked for your assistance in some basic analysis of its operations. Both plane seat 10 passengers each, and they fly commuters from Comf's...

Comh Airways, Inc., a small two plane plasttraper airline, has asked for your assistance in some basic analysis of its operations. Both planes seat 10 passengers each and they fly commuters from...

Calculate the break-even point in sales dollars. Break-even point If ticket prices were decreased by 10%, passenger fights would increase by 25% However, total variable costs would increase by the...

Widhorse Airwan, Inc, a small two plane passenger airline, has asked for your assistanke in some basic analysis of its operations Both planes seat 10 passengers each, and they fly commuters from...

Help with Cost Accounting Problem 1 Crede Manufacturing Company uses a standard cost accounting system. In 2005, 33,000 units were produced. Each unit took several pounds of direct materials and 113...

Each of the following situations occurred during 2013 for one of your audit clients: 1. The write-off of inventory due to obsolescence. 2. Discovery that depreciation expenses were omitted by...

If the Boolean function (a) PQ+R(S+T+U) (c) P+Q Z=PQ+PQR+PORS+PORST+PQRSTU, then Z is (b) PQ (d) P+Q+R+S+T+

If investors were risk averse, they would want to A . invest in technology stocks. B . minimize risk, i . e . , standard deviation, for the amount of return they are receiving on an investment. C ....

CT Corp Comprehensive Question Canadian Tire Corporation, Limited ( Canadian Tire ) is a family of companies that includes a retail segment and a financial services division, among others. The retail...

4. How does the use of a learning management system better link training to business strategy and goals?

7. Discuss the steps necessary to introduce a new training practice from a change model perspective.

6. Follow up, reevaluate, and modify. Be flexible and make changes if they are needed. Share information about mistakes or issues, and work with the employees affected to fix them.