=+8-30 KK Contribution approach, relevant costs OBJECTIVE 2 Air Tropics has leased a single jet aircraft that it operates between Darwin and the Fijian Islands. Only tourist-class seats are available on its planes. An analyst has collected the following information:

Seating capacity per plane 360 passengers Average number of passengers per flight 200 passengers Average one-way fare $500 Variable fuel costs $14 000 per flight Food and beverage service costs (no charge to passenger) $20 per passenger Commission to travel agents paid by Air Tropics (all tickets are booked by travel agents) 8% of fare Fixed annual lease costs allocated to each flight $53 000 per flight Fixed ground-services (maintenance, check in, baggage handling) costs allocated to each flight $7 000 per flight Fixed flight crew salaries allocated to each flight $4 000 per flight Assume that fuel costs are unaffected by the actual number of passengers on a flight.

Required 1 Calculate the total contribution margin from passengers that Air Tropics earns on each one-way flight between Darwin and Fiji.