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Annual Fixed Costs = $840,000 Variable Costs = $6.00/flight mile Revenue Rate = $9.00/flight mile Breakeven level = 280,000 flight miles if high point could
Annual Fixed Costs = $840,000
Variable Costs = $6.00/flight mile
Revenue Rate = $9.00/flight mile
Breakeven level = 280,000 flight miles
if high point could renegotiate its fuel contract and thus decrease variable costs per flight mile by 8% to ($5.52), how much could flight miles decrease and the operation remain at a breakeven level?
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