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Boiling is the largest corn medical airplane manufacture in the world. One of its airplanes is the 757-300, a 240-passenger plane with a range up
Boiling is the largest corn medical airplane manufacture in the world. One of its airplanes is the 757-300, a 240-passenger plane with a range up to 4, 010 miles. The 757 series has the lowest operating cost per seat-mile of any mid-sized or single-aisle jetliner. First deliveries of 757-300 s took place in 1999. Assume that Boeing's annual fixed costs for the 757-300 are $800 million, its variable cost per airplane is $45 million, and the selling price is $65 million per plane. Compute Boeing's break-even point in number of 757-300 airplanes and in dollars of sales. Suppose Boeing plans to sell forty-two 757-300 airplanes in 2005. Compute Boeing's Projected operating profit. Suppose Boeing increased its fixed costs by $84 million and reduced variable cost per airplane by $2 million. Compute its operating profit if it sells forty-two 757-300 airplanes. Compute the break-even point. Comment on your results
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