A large, profitable commercial airline company flies 737-type aircraft, each with a maximum seating capacity of 132 passengers. Company literature states that the economic breakeven point with these aircraft is 62 passengers. (2.2) a. Draw a conceptual graph to show total revenue and total costs that this company is experiencing. b. Identify three types of fixed costs that the airline should carefully examine to lower its breakeven point. Explain your reasoning. c. Identify three types of variable costs that can possibly be reduced to lower the breakeven point. Why did you select these cost items?
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
A large, profitable commercial airline company
flies 737-type aircraft, each with a maximum seating
capacity of 132 passengers. Company literature states
that the economic breakeven point with these aircraft is
62 passengers. (2.2)
a. Draw a conceptual graph to show total revenue and
total costs that this company is experiencing.
b. Identify three types of fixed costs that the airline
should carefully examine to lower its breakeven
point. Explain your reasoning.
c. Identify three types of variable costs that can
possibly be reduced to lower the breakeven point.
Why did you select these cost items?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
