Total costs and unit costs. (10 minutes) Weltferien, AG, markets vacation packages to Tenerife from Dresden. The

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Total costs and unit costs. (10 minutes) Weltferien, AG, markets vacation packages to Tenerife from Dresden. The package includes a round-trip flight on Saxon-Air. Weltferien pays Saxon-Air DM60,000 for each roundtrip flight. The maximum load on a flight is 300 passengers.

REQUIRED 1. What is the unit cost to Weltferien of each passenger on a Saxon-Air round-trip flight if there are

(a) 200,

(b) 250, or

(c) 300 passengers?

2. What role can the unit-cost figures per passenger calculated in requirement 1 play when Weltferien is predicting the total air-flight costs to be paid next month for Saxon-Air carrying 4,000 passengers on 15 scheduied round-trip flights? l01

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Management And Cost Accounting

ISBN: 9780130805478

1st Edition

Authors: Charles T. Horngren, Alnoor Bhimani, Srikant M. Datar, George Foster

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