Total costs and unit costs. (10 minutes) Weltferien, AG, markets vacation packages to Tenerife from Dresden. The
Question:
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
Step by Step Answer:
Management And Cost Accounting
ISBN: 9780130805478
1st Edition
Authors: Charles T. Horngren, Alnoor Bhimani, Srikant M. Datar, George Foster