Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Could someone please help me. I am sooo confused! Like I dont know what Im doing :( You are the owner of a small airline

Could someone please help me. I am sooo confused! Like I dont know what Im doing :( image text in transcribed
image text in transcribed
image text in transcribed
You are the owner of a small airline company called Columbus Air, which operates three airplanes, one on each of three different routes (Cancun, Los Angeles, and New York). As the owner, you are preparing a profit analysis for your company. Use the information that follows to setup a workbook solution for calculating profit. Be sure to read the entire data and calculation sections PRIOR to attempting this problem Remember that an extra 10 minutes spent planning your design could save you hours in execution and what-if analyses later! (Hint: separate tables of data for each route may mak easier later. Remember to use cell references where ever possible for constant values.) DATA SECTION Information has been gathered from the previous year about your expenses and your revenues values are as follows: Employee wages o You have 3 pilots, who are each paid wages of $90,000 a year You have 15 union employees, who are paid wages of $45,000 a year. There are 6 employees each assigned to the Los Angeles and Cancun routes, and 3 assigned to the New York route e Operating Costs Maintenance expenses: Each plane is required to have one major maintenance session a year which costs $100,000 per plane. o o Fuel costs: Last year you bought jet fuel at an average of $10 per gallon. Fuel consumption was prorated based on the miles per route and the number of trips made Total annual fuel consumption on the Cancun route was 700,000 gallons Total annual fuel consumption on the Los Angeles route was 1,370,000 gallons Total annual fuel consumption on the New York route was 40,000 gallons. . Airfare revenues o A ticket to New York costs $300 roundtrip, and you sold 30,000 tickets last year o A ticket to Los Angeles costs $820 rountrip, and you sold 17,500 tickets last year o A ticket to Cancun costs $1,300 rountrip and you sold 7,500 tickets last year

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

Hospitality Management Accounting

Authors: Michael M. Coltman, Martin G. Jagels, Martin Jagels

7th Edition

0471348848, 978-0471348849

More Books

Students also viewed these Accounting questions