Calculate the break-even number of passengers per flight.

Question

Cariveh Co sells automotive supplies from 25 different locations in one country. Each branch has up to 30 staff working there, although most of the accounting systems are designed and implemented from the company's head office. All accounting systems, apart from petty cash, are computerised, with the internal audit department frequently advising and implementing controls within those systems. Cariveh has an internal audit department of six staff, all of whom have been employed at Cariveh for a minimum of five years and some for as long as 15 years. In the past, the chief internal auditor appoints staff within the internal audit department, although the chief executive officer (CEO) is responsible for appointing the chief internal auditor. The chief internal auditor reports directly to the finance director. The finance director also assists the chief internal auditor in deciding on the scope of work of the internal audit department. You are an audit manager in the internal audit…

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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Cariveh Co sells automotive supplies from 25 different locations in one country. Each branch has up to 30 staff working there, although most of the accounting systems are designed and implemented from the company's head office. All accounting systems, apart from petty cash, are computerised, with the internal audit department frequently advising and implementing controls within those systems. Cariveh has an internal audit department of six staff, all of whom have been employed at Cariveh for a minimum of five years and some for as long as 15 years. In the past, the chief internal auditor appoints staff within the internal audit department, although the chief executive officer (CEO) is responsible for appointing the chief internal auditor. The chief internal auditor reports directly to the finance director. The finance director also assists the chief internal auditor in deciding on the scope of work of the internal audit department. You are an audit manager in the internal audit…

Provide solution of this all Question please Financial 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.

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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.

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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.

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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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Answer 25

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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