Question
https://www.coursehero.com/file/p7qmnm5/What-is-the-breakeven-jet-fuel-cost-for-the-project-b-What-is-the-breakeven/#/doc/qa Parts a) and b) for question number 5 in this document. I understand breakeven point formula as FC/gross PM, but I don't understand how
https://www.coursehero.com/file/p7qmnm5/What-is-the-breakeven-jet-fuel-cost-for-the-project-b-What-is-the-breakeven/#/doc/qa
Parts a) and b) for question number 5 in this document.
I understand breakeven point formula as FC/gross PM, but I don't understand how to derive those numbers from the information given in this prompt. I don't know if FC are supposed to be equal to the initial cost outlay, and I don't know if gross profit margin is equal to the expected savings? I've only solved BE analysis for examples where you're selling a product.
I'm not asking for the answer, but can you please explain how to arrive at the inputs needed for the question listed above, giving the facts of the article?
I don't understand why this keeps getting flagged? Are you not allowed to explain how to get this problem started? I have a similar question on my homework assignment and I'm not really sure how to get it started. Could you please explain where to try to start finding inputs for breakeven point when it's an investment decision and not a production problem? I am NOT asking for the answer or trying to pass off a tutor's work as my own. I'm simply wondering if you can tutor me into where to start looking/how to start thinking in order to find the values (FC, gross profit margin, etc.) that I need in order to answer this question.
The document linked is so you can read the inputs and see what question I'm referencing.
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