In Chapters 1 and 2, we have only had Easy Air’s profits in terms of revenue miles flown. Now we would like to expand this analysis to look at profitability both in terms of number of passengers flown and number of flights flown. To do this, let us use the Easy Air database and solution templates. Using the Excel worksheet titled Summary Easy Air and Template for DB 2.1.

• First, fill in the first three rows of the template by calculating the average revenue, expense, and profit based on revenue per passenger miles flown for the years 20x4 to 20x6.

• Repeat these calculations for the next three rows of the worksheet using the number of flights as your divisor.

• For the last three rows of the worksheet, repeat the calculation of average revenue, expense, and profit using the number of passengers flown as your divisor.

REQUIRED:

a. Turn in your worksheet to your instructor.

b. Given this information, do you see any trends in overall profitability? What are they?

c. Which of these measures do you like the best? Why?