Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

An airline company is currently considering the elimination of its Sydney to Armidale flight route. The net result for the Sydney-Armidale and other flight routes

image text in transcribed
An airline company is currently considering the elimination of its Sydney to Armidale flight route. The net result for the Sydney-Armidale and other flight routes for the past 12 months is supplied below: Other flight routes Sydney-Armidale route Sale revenue $64,064,628 $5,037,602 Direct staffing costs $44,845,240 $3,778,202 Other direct flight costs $6,406,463 $1,007,520 Allocated administration and facilities costs $3,203,231 $755,640 Net result $9,609,694 - $503,760 If the Sydney to Armidale flight route is eliminated: . 75% of the staff which currently work on the Sydney to Armidale route will be made redundant. All other staff for this route will be retained and allocated to other duties. . $56,000 in transitionary costs will be incurred. Required: Evaluate and discuss whether the Sydney to Armidale flight route should be eliminated or retained. As part of your overall evaluation, consider financial, strategic and social factors

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Shenanigans

Authors: Howard Schilit

2nd Edition

0071386262, 9780071386265

More Books

Students also viewed these Accounting questions

Question

3. How can we use information and communication to generate trust?

Answered: 1 week ago