Calculate the break-even number of passengers per flight.

Question

Everlast Manufacturing uses a standard cost system. • Standards call for 2.5 direct labor hours per unit. The standard labor rate is $14 per hour. Four pounds of material are needed per unit at a standard cost of $2.80 per pound. . Everlast produces 12,800 units during the year. • • Direct labor costs are $460,320 for 33,100 hours. Everlast purchases 58,500 pounds of materials at $3.00 per pound and uses 54,800 pounds (the rest remain in inventory). For direct labor, what is the efficiency (usage) variance?

Answer 1

Question

Chapter 20, Problem 1MAD

a.

To determine

Calculate the break-even number of passengers per flight.

b.

To determine

Explain whether the airline should add the flight to its schedule.

c.

To determine

Calculate the profit that each flight should produce.

d.

To determine

List the additional issues that the airline might consider in the decision.

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Everlast Manufacturing uses a standard cost system. • Standards call for 2.5 direct labor hours per unit. The standard labor rate is $14 per hour. Four pounds of material are needed per unit at a standard cost of $2.80 per pound. . Everlast produces 12,800 units during the year. • • Direct labor costs are $460,320 for 33,100 hours. Everlast purchases 58,500 pounds of materials at $3.00 per pound and uses 54,800 pounds (the rest remain in inventory). For direct labor, what is the efficiency (usage) variance?

If total assets decreased by $15,000 and stockholders' equity increased by $5,500 during a period of time, then total liabilities must have changed by what amount and direction during that same period?

General accounting

Answer 2

Question

Chapter 20, Problem 1MAD

a.

To determine

Calculate the break-even number of passengers per flight.

b.

To determine

Explain whether the airline should add the flight to its schedule.

c.

To determine

Calculate the profit that each flight should produce.

d.

To determine

List the additional issues that the airline might consider in the decision.

Expert Solution & Answer

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Answer 3

Question

Chapter 20, Problem 1MAD

a.

To determine

Calculate the break-even number of passengers per flight.

b.

To determine

Explain whether the airline should add the flight to its schedule.

c.

To determine

Calculate the profit that each flight should produce.

d.

To determine

List the additional issues that the airline might consider in the decision.

Expert Solution & Answer

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Answer 4

Question

Chapter 20, Problem 1MAD

a.

To determine

Calculate the break-even number of passengers per flight.

b.

To determine

Explain whether the airline should add the flight to its schedule.

c.

To determine

Calculate the profit that each flight should produce.

d.

To determine

List the additional issues that the airline might consider in the decision.

Expert Solution & Answer

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Answer 5

Chapter 20, Problem 1MAD

a.

To determine

Calculate the break-even number of passengers per flight.

b.

To determine

Explain whether the airline should add the flight to its schedule.

c.

To determine

Calculate the profit that each flight should produce.

d.

To determine

List the additional issues that the airline might consider in the decision.

Answer 6

Chapter 20, Problem 1MAD

a.

To determine

Calculate the break-even number of passengers per flight.

Answer 7

Chapter 20, Problem 1MAD

a.

To determine

Calculate the break-even number of passengers per flight.

Answer 8

b.

To determine

Explain whether the airline should add the flight to its schedule.

Answer 9

b.

To determine

Explain whether the airline should add the flight to its schedule.

Answer 10

c.

To determine

Calculate the profit that each flight should produce.

Answer 11

c.

To determine

Calculate the profit that each flight should produce.

Answer 12

d.

To determine

List the additional issues that the airline might consider in the decision.

Answer 13

d.

To determine

List the additional issues that the airline might consider in the decision.

Answer 14

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Calculate the break-even number of passengers per flight.

Solution Summary: The author calculates the break-even number of passengers per flight by calculating the contribution margin per passenger.

Calculate the break-even number of passengers per flight.

Explain whether the airline should add the flight to its schedule.

Calculate the profit that each flight should produce.

List the additional issues that the airline might consider in the decision.

Chapter 20 Solutions