CVP chart and calculations Sycamore Flying School owns two training aircraft. It charges $25 per hour for solo and $35 per hour for dual time with an instructor. It pays instructors $10 per hour so all aircraft time is viewed as a single rate for accounting purposes. The company's fixed cost is $800 per month and variable cost of the airplanes is $15 per hour. In October the airplanes were flown a total of 120 billable hours. Due to bad weather that prevented training flights only 60 hours were charged in November.

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REQUIRED a. Prepare a cost-volume-profit chart showing the break-even point and the amounts earned in October and November. b. Verify the results shown on your chart with calculations. c. Calculate the margin of safety for October and November.