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

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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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

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