Question: Sonic Flights is preparing a contribution margin report segmented by route. The following information is available: Miami/LA Atlanta/ New York New York/ Chicago Average ticket

Sonic Flights is preparing a contribution margin report segmented by route. The following information is available:

Miami/LA Atlanta/ New York New York/ Chicago
Average ticket price per passenger $1,200 $800 $700
Total passengers served 6,400 10,800 11,300
Total miles flown 150,000 105,000 80,000

The variable costs per unit are as follows:

Fuel $17 per mile
Wages $21 per mile
Food/beverage service $12 per passenger
Selling $65 per passenger

What is the contribution margin ratio for the Miami/LA route?

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!

Q:

Night Flights is preparing a contribution margin report segmented by route. The following information is available: Line Item Description Miami/LA Atlanta/ New York New York/ Chicago Average ticket...

Q:

Night Flights is preparing a contribution margin report segmented by route. The following information is available: Atiantal/New York/ Average ticket price per passenger Total passengers served Total...

Q:

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...

Q:

12 Chapter A4148 23218 6/8/01 6:25 PM Page 361 12Initiating Objectives After reading this chapter, you will be able to: 1. Understand the importance of initiating projects that add value to an...

Q:

PLEASE COMPLETE NO LATER THAN 10/07 @8:00AM Each question(1,2,& 3) must be a minimum of 200 words. Please make answers detailed and knowledgeable based off the attached reading. ARE YOU ABLE TO...

Q:

Scenario You and your group work for a multi-national consulting firm. Your team is a group of capital budget consultants and are seeking new engagements. You intend on responding to a Request for...

Q:

USG Corporation case study questions. Questions and cases are attached. Assignment In your analysis, you should address the following questions: 1) Review USG's business, it's past performance, and...

Q:

Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...

Q:

USG Corporation case study questions. Case and question are attached. Assignment In your analysis, you should address the following questions: 1) Review USG's business, it's past performance, and the...

Q:

As if dealing with economic cycles, fuel price volatility, organized labor, changing customer demographics, and increased competition was not enough... Delta CEO Ed Bastian assumed the role of Deltas...

Q:

What are the shapes and sizes of the trade area zones of a shopping centre near your school?

Q:

He chose a company from the non-financial companies whose shares are traded in the Saudi Stock Exchange (Tadawul) and assuming that it achieves a return on current assets of 4%, and 9% on fixed...

Q:

what is the maximum cost in dollars of the array if it must pay for itself in two years of operation averaging 1 0 hours per day? Assume that it earns money at a rate of 2 0 cents per kilowatt - hour

Q:

Hypothesis Testing of a Single Mean LCTCS Tuition: Louisiana Community And Technical College System consist of 2 community colleges across the state. I think RPCC's tuition and fees is lower than the...

Q:

3. Should managers inform employees that their Web behavior is being monitored? Or should managers monitor secretly? Why or why not? The Internet has become an extremely valuable business tool, but...

Q:

7-8 Your company supplies ceramic floor tiles to Leroy Merlin, Bricorama, and other home improvement stores in France. You have been asked to start using radio frequency identification tags on each...

Q:

7-6 Does anyone own the Internet? Discuss how the Internet is currently governed and consider whether countries should be able to impose its own rules on the Internet within their own borders.