D E F G Analysis of Cost Behavior for Allegiant Travel Company Allegiant Travel Company Have you ever flown with Allegiant Airlines? The following is from Allegiant Travel Company's website: From America's favorite small cities to world-class destinations, Allegiant makes leisure travel affordable and convenient. With low-low fares, nonstop alljet service and premier travel partners. Allegiant provides a complete travel experience with great value and without all the hassle. Allegiant was founded in 1997 and is certified by the US Department of Transportation (DOT) as a "Scheduled Air Carrier with authority to fly scheduled and charter airline operations throughout the US. The Company also has authority for charter service to Canada and Mexico Operating Operating revenues expenses fassengers Year (thousands) (thousands) thousands) 2020 990,073 1.271.058 8,624 2019 1,840,965 1,477,015 15012 2018 1,667,447 1,423.988 13,750 2017 1.511,203 1280.573 12,310 2016 1.378,942 1,006,375 11.128 2015 1202138 890,488 9,501 2014 1,137 046 979,701 8.154 2013 996,150 841,413 7.241 2012 908,719 778,415 6,097 2011 779, 117 693,673 6,176 *Total system statistics for passengers, not scheduled Please open the 2020 and 2015 10-Ks for Allegiant Travel Company 1 AS year summary of selected financial data can be found in ITEM 6 on pages 23:30 of the 2020 10- & and on pages 25-26 of the 2015 10K 5 Enter data into the table on the "DatalBreak Even" worksheet. Enter amounts in thousand Operating 6 revenue and operating expenses is stated in thousands on Allegiant's Selected Financial Data pales 17 Passengers are not 10 you need to restate passenger number into thousands. For example, in 2020 passengers are 8,623,984 (please use total system statistics at the top of the page), and you will restate this 19 to 3.624 for purposes of these regression analyses. 20 23 22 1. Prepare a simple regression of Operating Expenses as a function of Passengers 2.1 Prepare a plot of the regression results. Include in your scattergrama trend and repression -24 formula Be sure the regression formula is not in scientific notation 25 Be sure your regression line exactly intersects the Yanos. 26 2. Prepare a simple regression of Operating revenues as a function of Pawangen 27 Prepare a plot of the regression results. Include in your XY scattergrama trendline and repression 20 formula. Be sure the ression formula is not in scientific notation Be sure your ingression line exactly intersects the 19 3. Using the regression equations derwed in and estimate the number of passengers to 31 be carried for lant to be even Subtract the Operating expense equation from the Operating revenues equation plan baisers carried until there is 30. That will be your break in point, on average over the years 2011-2020
