Midwest Airlines flies a short nonstop with 148-passenger planes. Considering all the costs of owning each plane plus the salaries for their crews and the fuel costs and landing fees, the fixed cost for a single flight is $16,500. If the costs associated with each passenger (reservations cost, check-in cost, baggage handling cost, snack cost, etc.) total $75 per passenger and the average ticket price is $214 (before the various taxes are added), what percentage of seats must be filled for the flight to break even?
Midwest Airlines flies a short nonstop with 148-passenger planes. Considering all the costs of owning each plane plus the salaries for their crews and the fuel costs and landing fees, the fixed cost for a single flight is $16,500. If the costs associated with each passenger (reservations cost, check-in cost, baggage handling cost, snack cost, etc.) total $75 per passenger and the average ticket price is $214 (before the various taxes are added), what percentage of seats must be filled for the flight to break even?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Midwest Airlines flies a short nonstop with 148-passenger planes. Considering all the costs of owning each plane plus the salaries for their crews and the fuel costs and landing fees, the fixed cost for a single flight is $16,500. If the costs associated with each passenger (reservations cost, check-in cost, baggage handling cost, snack cost, etc.) total $75 per passenger and the average ticket price is $214 (before the various taxes are added), what percentage of seats must be filled for the flight to break even?
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