Easy Air wants to get a handle on how effectively it is using its available capacity. Rudy has done a basic study, resulting in the information contained in the DB 4.1a and DB 4.1c templates in your database.

REQUIRED:

a. Using template DB 4.1a, calculate the percentage of time Easy Air’s planes spend in each type of capacity utilization.

b. Based solely on time utilized, where is the largest problem at Easy Air? Be specific.

c. Now go to the DB 4.1c template. Rudy tells you that the committed capacity cost for the month under study is $112, while the managed capacity cost is $760. Using these cost estimates, calculate the cost for each category of capacity utilization.

d. Using your answer to (c), calculate the percentages of cost in each category of capacity utilization.

e. Where do the biggest problems now appear to be? How does this differ from what the time- based percentages suggested? Be specific.

f. Turn in your answers to the questions and worksheets to your instructor.