Question
Annual Fixed Costs = $840,000 Variable Costs = $6.00/flight mile Revenue Rate = $9.00/flight mile Breakeven level = 280,000 flight miles If the actual flight
Annual Fixed Costs = $840,000
Variable Costs = $6.00/flight mile
Revenue Rate = $9.00/flight mile
Breakeven level = 280,000 flight miles
If the actual flight miles were 12% below the base case breakeven level of 280,000 flight miles, what fixed cost reduction would be required to keep operation at a financial breakeven level?
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Financial Accounting
Authors: Bev Vickerstaff, Parminder Johal
1st Edition
1444170414, 978-1444170412
