Frightproof Commuter Airlines is considering adding a new flight to its current schedule from Metro to Hicksville This route has the following prices and costs Selling price per passenger per flight $ 90 Variable cost per passenger per flight $ 30 Fixed cost per flight $ 3,000 Income tax rate 30 Required a Compute Frightproof's break even point in number of passengers per flight b How many passengers per flight must Frightproof have to earn $1,260 per flight after taxes

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Question: Frightproof Commuter Airlines is considering adding a new flight to its current schedule from Metro to Hicksville. This route has the following prices and costs.

Frightproof Commuter Airlines is considering adding a new flight to its current schedule from Metro to Hicksville. This route has the following prices and costs.


Selling price per passenger per flight	$	90
Variable cost per passenger per flight	$	30
Fixed cost per flight	$	3,000
Income tax rate		30	%

Required:

a. Compute Frightproof's break-even point in number of passengers per flight.

b. How many passengers per flight must Frightproof have to earn $1,260 per flight after taxes?

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