Formula Static . Actual 3:335 3:333 {3'2\"535 Variance (per airkm) air-km) Passenger revenue $3.50 $112 000 $122 500 $10 500 U Less Variable costs: Fuel 0.50 Aircraft maintenance 0.75 Flight crew salaries 0.40 Selling and administration 0.80 Total variable expenses $2.45 $ 78 500 $ 85 750 $ 7 250 F Contribution margin $1.05 $ 33 500 $ 36 750 $ 3 250 U Less Fixed costs: Depreciation on aircraft $2 900 Landing fees 900 Supervisory salaries 9 000 Selling and administrative 11 000 Total xed expenses $23 800 $ 24 900 $ 23 800 $ 1 100 U Net prot $ 8 600 $ 12 950 $ 4 350 U