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 $ 240
Variable cost per passenger per flight $ 60
Fixed cost per flight $ 8,640
Income tax rate 25 %

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

b. How many passengers per flight must Frightproof have to earn $3,510 per flight after taxes?

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