Hi!

I need help with part a. of this problem.

Thank you!

PROBLEM 4- 5. Break - Even , " What If "\\ David Peterson is the owner/ pilot of Peter . son Island Air . The company flies a round trip daily from Seattle's Lake Union to a re. sort in the Gulf Islands in Canada. In 2005 , the company reported an annual income before taxes of $ 1 . 760 although that included a deduction of $34, 000 reflecting David's "salary . Revenue* ( $250 X 1 , 248 passengers ) $312, 000. 00 Less costs :` Pilot ( owner's salary ) $ 34, 000.00 Fuel ( 41 , 600 gallons * $2. 40 ) 99, 840.00 Maintenance ( variable ) 124, 800.00 Depreciation of plane* 20, 000.00 Depreciation of office equipment 600.00 Rent expense 24, 000. 00 Insurance* 5, 000. 00 Miscellaneous ( fixed) 2, 000.00 310, 240. 00 1 , 760.00 $ Income before taxes Revenue of $3 12, 000 reflects six round trips per week for 52 weeks with an average of four passengers paying $250 each per round - trip ( 6 X 52 X 4 X $250 = $312, 000 ). The flight to the resort is 400 miles one way . With 312 round - trips ( 6 per week X 52 weeks ) , that amounts to 249 , 600 miles . The plane averages 7 miles per gallon . Required a . How many round trips is David currently flying and how many round -trips are needed in total to break even ?" b. How many round - trips are needed so that David can draw a salary of $80, 000 and still not show a loss ?" C . What is the average before tax profit of a round - trip flight in 2005 ?) d . What is the incremental profit associated with adding a round - trip flight