Break-Even Sales and Sales Mix for a Service Company Yellow Dove Airways provides air transportation services between Portland and Minneapolis. A single Portland to Minneapolis round-trip flight has the followi operating statistics: Fuel and landing fees $10,331 Flight crew salaries 7,913 Airplane depreciation 3,736 Variable cost per passenger-business class 60 Variable cost per passenger-economy class 50 Round-trip ticket price-business class 590 Round-trip ticket price-economy class 310 It is assumed that the fuel and landing fees, crew salaries, and airplane depreciation are fixed, regardless of the number of seats sold for the round-trip flight. a. Compute the break-even number of seats sold on a single round-trip flight for the overall product. Assume that the overall product is 20% business class and 80% economy class tickets. Round your answer to whole number. Total number of seats at break-even seats b. How many business class and economy class seats would be sold at the break-even point? Round your answers to whole number. Business class seats

Break-Even Sales and Sales Mix for a Service Company Yellow Dove Airways provides air transportation services between Portland and Minneapolis. A single Portland to Minneapolis round-trip flight has the followi operating statistics: Fuel and landing fees $10,331 Flight crew salaries 7,913 Airplane depreciation 3,736 Variable cost per passenger-business class 60 Variable cost per passenger-economy class 50 Round-trip ticket price-business class 590 Round-trip ticket price-economy class 310 It is assumed that the fuel and landing fees, crew salaries, and airplane depreciation are fixed, regardless of the number of seats sold for the round-trip flight. a. Compute the break-even number of seats sold on a single round-trip flight for the overall product. Assume that the overall product is 20% business class and 80% economy class tickets. Round your answer to whole number. Total number of seats at break-even seats b. How many business class and economy class seats would be sold at the break-even point? Round your answers to whole number. Business class seats

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is $2,300 and the variable cost per cup of coffee served is $0.23. Required: 1. Fill in the following table with your estimates of the company's total cost and average cost per cup of coffee at the indicated levels of activity. 2. Does the average cost per cup of coffee served increase, decrease, or remain the same as the number of cups of coffee served in a week increases? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Fill in the following table with your estimates of the company's total cost and average cost per cup of coffee at the indicated levels of activity. (Round the "Average cost per cup of coffee served" to 3 decimal places.) Fixed cost Variable cost Total cost Average cost per cup of coffee served 1,800 Cups of 1,900 Cups of Coffee Coffee Required 1 2,000 Cups of Coffee Required 2 >
Break-Even Sales and Sales Mix for a Service Company Zero Turbulence Airline provides air transportation services between Los Angeles, California, and Kona, Hawaii. A single Los Angeles to Kona round-trip flight has the following operating statistics: Fuel Flight crew salaries Airplane depreciation Variable cost per passenger-business class Variable cost per passenger-economy class Round-trip ticket price-business class Rou rip ticket price-economy class It is assumed that the fuel, crew salaries, and airplane depreciation are fixed, regardless of the number of seats sold for the round-trip flight. $14,006 10,728 5,066 45 35 575 275 a. Compute the break-even number of seats sold on a single round-trip flight for the overall enterprise product, E. Assume that the overall product mix is 20% business class and 80% economy class tickets. Total number of seats at break-even Business class seats at break-even Economy class seats at break-even seats b. How many business class and economy…
how much does flycheap need to charge per passenger to break even on this flight if 25/32 seats are filled? Revenue - 25 passenagers- 12,500 pounds costs - 500 pounds per passenager fuel 6000kg at 0.5 pounds per kg Aircraft dry lease 2,500 pounds per flight Aircraft servicing 600 pounds per flight aircraft cost - 2 pilots at 700 pounds per hour, 3 crew at 400 pounds per hour Other overheads - 1500 pounds per flight Airport charges (Landing, passenger use of facilities) - 900 pounds per flight Catering costs - 1400 pounds per flight. You can omit the price of fuel if you want to provide an added challenge.
Eastern Airlines reports the following cost data for the year. The company flew 100 private flights during the year. A group has offered Eastern $22,000 for a private flight to Chicago for its members. What is the contribution margin from accepting this offer? Revenue $ 40,000 per flight Wages, salaries, and benefits $ 14,000 per flight Fuel and oil $ 9,000 per flight Food and beverages $ 1,000 per flight Depreciation $ 600,000 per year Rent $ 500,000 per year
Please answer last 2 subparts only
Break-Even Sales: Sales for Target Profit Health-Temp Company is a placement agency for temporary nurses. It serves hospitals and clinics throughout the metropolitan area. Health-Temp Company believes it will place temporary nurses for a total of 22,500 hours next year. Health-Temp charges the hospitals and clinics $120 per hour and has variable costs of $94.80 per hour (this includes the payment to the nurse). Total fixed costs equal $551,628. Required: 1. Calculate the contribution margin per unit and the contribution margin ratio (express the ratio as a decimal rather than a percentage). If required, round your answers to two decimal places. Contribution margin per unit Contribution margin ratio 2. Calculate the sales revenue needed to break even. 3. Calculate the sales revenue needed to achieve a target profit of $156,240. 4. What if Health-Temp had target operating income (profit) of $191,520? Would sales revenue be larger or smaller than the one calculated in Requirement 3? By…
Break-Even Sales and Sales Mix for a Service Company Zero Turbulence Airline provides air transportation services between Los Angeles, California; and Kona, Hawaii. A single Los Angeles to Kona round-trip flight has the following operating statistics: Fuel $14,373 Flight crew salaries 11,009 Airplane depreciation 5,198 Variable cost per passenger—business class 70 Variable cost per passenger—economy class 55 Round-trip ticket price—business class 540 Round-trip ticket price—economy class 285 It is assumed that the fuel, crew salaries, and airplane depreciation are fixed, regardless of the number of seats sold for the round-trip flight. If required round the answers to nearest whole number. a. Compute the break-even number of seats sold on a single round-trip flight for the overall product, E. Assume that the overall product is 20% business class and 80% economy class seats. Total number of seats at break-even fill in the blank 1 seats b. How many business…
Analyze Cityscape Hotels Cityscape Hotels has 200 rooms available in a major metropolitan city. The hotel is able to attract business customers during the weekdays and leisure customers during the weekend. However, the leisure customers on weekends occupy fewer rooms than do business customers on weekdays. Thus, Cityscape plans to provide special weekend pricing to attract additional leisure customers. A hotel room is priced at $180 per room night. The cost of a hotel room night includes the following: Line Item Description Cost Per Room Night(at normal occupancy) Housekeeping service $23 Utilities 7 Amenities 3 Hotel depreciation 55 Hotel staff (excluding housekeeping) 42 Total $130 The special weekend price is proposed for $120 per room night. At this price, it is anticipated that average occupancy for the weekend (Friday, Saturday, and Sunday) will increase from 30% to 50% of available rooms. Question Content Area a. What is the contribution margin for a…
The following data are for Greasy Gary's Grubhouse: West East Sales volume (units): Hub Cap 14,000 9,000 Gas Can 6,500 18,000 Sales price per unit: Hub Cap $36 $28 Gas Can $22 $31 The variable cost of goods sold per unit Hub Cap $19 $17 Gas Can $9 $14 Variable selling and administrative per unit Hub Cap $ 5 $ 4 Gas Can $ 3 $2 (a) Complete a contribution margin by sales territory and by-product (b) Analyze the statements and comment on what can help the company in terms of profitability, product placement, and territory. List 3 pros and cons to each product and territory.
Break-even sales and sales mix for a service company Zero Turbulence Airline provides air transportation services between Los Angeles, California, and Kona, Hawaii. A single Los Angeles to Kona round- trip flight has the following operating statistics: Fuel Flight crew salaries Airplane depreciation. Variable cost per passenger-business class Variable cost per passenger-economy class $8,065 6,178 2,917 55 45 Round-trip ticket price-business class 525 285 Round-trip ticket price-economy class It is assumed that the fuel, crew salaries, and airplane depreciation are fixed, regardless of the number of seats sold for the round-trip flight. a. Compute the break-even number of seats sold on a single round-trip flight for the overall company product, M. Assume that the overall product mix is 20% business class and 80% economy class tickets. Total number of seats at break-even seats b. How many business class and economy class seats would be sold at the break-even point? Business class seats…
Sandhill Electrical Products serves both residential and commercial clients. Annual financial information for Sandhill is as follows: Commercial Residential Total Sales Revenues $808,000 $508,000 $1,316,000 Variable Costs 202,000 127,000 329,000 Contribution Margin $606,000 $381,000 987,000 Fixed Costs 292,500 Operating Profit $694,500 Calculate the break-even point in sales revenue dollars for Sandhill Electrical Products. Break-even point in sales revenue $
Break-Even Sales and Sales Mix for a Service Company Zero Turbulence Airline provides air transportation services between Los Angeles,, California; and Kona, Hawaii. A single Los Angeles to Kona round-trip flight has the following operating statistics: Fuel $6,956 Flight crew salaries 5,328 Airplane depreciation 2,516 Variable cost per passenger-business class 55 Variable cost per passenger-economy class 45 Round-trip ticket price-business class 585 Round-trip ticket price-economy class 315 It is assumed that the fuel, crew salaries, and airplane depreciation are fixed, regardless of the number of seats sold for the round-trip flight. If required round the answers to nearest whole number. a. Compute the break-even number of seats sold on a single round-trip flight for the overall product, E. Assume that the overall product is 10 % business class and 90 % economy class seats. Total number of seats at break-even seats b. How many business class and economy class seats would be sold at…