Question: Discount Airlines is preparing a contribution margin report segmented by route. The following information is available: Atlanta / New York Miami / LANew York /

Discount Airlines is preparing a contribution margin report segmented by route. The following information is available:
Atlanta/
New York
Miami/LANew York/
ChicagoAverage ticket price per passenger$900$1,250$750Total passengers served8,8007,10010,200Total miles flown121,000190,00095,000
The variable costs per unit are as follows:
Food/beverage service$7 per passengerSelling$90 per passengerFuel$15 per mileWages$20 per mile
What is the contribution margin ratio for the Miami/LA route (rounded to one decimal place)?

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!