Break-Even Sales and Sales Mix for a Service CompanyZero Turbulence Airline provides air transportation services between Los Angeles, California; and Kona, Hawaii. A single Los Angeles to Konaround-trip flight has the following operating statistics:Fuel$8,7986,739Flight crew salariesAirplane depreciation3,183Variable cost per passenger-business class65Variable cost per passenger-economy class50Round-trip ticket price-business class545Round-trip ticket price-economy class320It is assumed that the fuel, crew salaries, and airplane depreciation are fixed, regardless of the number of seats sold for the round-trip flight. Ifrequired 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-evenseatsb. How many business class and economy class seats would be sold at the break-even point?Business class seats at break-evenseatsEconomy class seats at break-evenseats

Break even sales is the dollar amount of revenue at which a business earns a profit of zero i.e. No…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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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.
Required information [The following information applies to the questions displayed below] Sub Station and Planet Sub reported the following selected financial data (5 in thousands). Sub Station's business strategy is to sell the best tasting sandwich with the highest quality ingredients. Planet Sub's business strategy is to sell the lowest cost sub on the planet. Net sales Net Income Total assets, beginning Total assets, ending Choose Numerator Choose Numerator Sub Station Planet Sub $63,171 4,532 43,599 2. Calculate Planet Sub's return on assets, profit margin, and asset turnover ratio. (Enter your answers in thousands of dollars. (L.e. 123,000 should be entered as 123)) Choose Numerator $109,345 23,022 76,283 118,571 Return on Assets Choose Denominator Profit Margin Choose Denominator Asset Turnover Choose Desominator Return on Assets Return on assets Profil Margis Asset Turnover Asset Tunaver 0 4
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Jacoby Company received an offer from an exporter for 29,500 units of product at $18 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data are available: Line Item Description Amount Domestic unit sales price $25 Unit manufacturing costs: Variable 9 Fixed 4 The differential revenue from the acceptance of the offer is a. $1,268,500 b. $206,500 c. $737,500 d. $531,000
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…
eBook Fuel Flight crew salaries Airplane depreciation Variable cost per passenger-business class Variable cost per passenger-economy class Round-trip ticket price-business class 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. 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: Total number of seats at break-even Business class seats at break-even $6,439 4,932 2,329 Economy class seats at break-even 65 Check My Work 2 more Check My Work uses remaining. 50 555 270 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…
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