Refer to the 1998 income statement for US Airways Group in Exercise E12.10 above. Of the total

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Refer to the 1998 income statement for US Airways Group in Exercise E12.10 above. Of the total $7,674 million in operating expenses, suppose the following are fixed costs (in millions):

Personnel ........... $2,040

Aircraft rent ........... 400

Other rent ........... 350

Depreciation and amortization . 318

Other ........... 890

Total ............ $ 4,038

a. Calculate the firm's operating leverage.

b. What would be the percentage change in core operating income from sales before tax if there were a 1 percent increase in sales?

c. At what level of sales would the airline incur operating losses?

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Refer to the 1998 income statement for US Airways Group in Exercise E12.10 above. Of the total

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a The fixed and variable operating cost breakdown is Variable cost VC 3636 million Fixed cost FC ...View the full answer

Financial statements

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