AC202 - Case: CVP Analysis Ideal Airways is a small local carrier that flies among the northeast states. The company provides only one class of seats: coach The following data are available: Average full passenger fare Number of seats per plane Average lo ad factor (seats occupied) Average variable cost per passenger Fixed operating costs per month $150 120 70% $ 40 $1,800,000 F. Ideal is considering offering a discounted fare of $120, which the company feels would increase the load factor to 80 percent. Only the additional seats would be sold at the discounted fare. Additional monthly advertising costs would be $100,000. How much before-tax income would the discounted fare provide Ideal Airways if the company has 20 flights per day, 30 days per month? (Use the original data) G. Ideal has an opportunity to obtain a new route. The company feels it can sell seats at $175 on the route, but the lo ad factor would be only 60 percent. The company would fly the route 20 times per month. The increase in fixed costs for additional crew, additional planes, landing fees, maintenance, and so on, would total $100,000 per month. Variable cost per passenger would remain at $40 (1) Should the company obtain the route? Support your recommendation with specific data. (2) How many flights would Ideal need to earn pretax income of $45,800 per month on this route? (3) If the load factor could be increased to 75 percent, how many flights would the company need to eam before-tax income of $45,800 per month on this route? (4) What qualitative factors should Ideal consider in making its decision about acquiring this route