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%
c. Each aircraft has the capacity for 70 passengers per flight. In view of this capacity limitation, can Frightproof carry enough passengers to break even? Can the company carry enough passengers to earn $3,510 per flight after taxes?"
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
