information in first picture questions in 2nd picture.

Because Grace and George anticipated setting their fee structure based on flight miles, she wanted to ascertain the baseline breakeven level of flight miles they needed to fly. With the basic data she had crafted, it was not too difficult to derive 280,000 flight miles as their needed breakeven level. As merely a starting point, she had assumed a reasonable revenue rate, no matter the number of passengers on board, of $9.00 per flight mile. Clearly, that rate could be changed. Her basic calculation was as follows: Assumed base case data of FC = annual fixed costs of $840,000 VC = variable costs of $6.00/flight mile RR = revenue rate of $9.00/flight mile Breakeven calculation: SFC + (SRR/flight mile - SVC/flight mile) = breakeven annual flight miles $840,000 = ($9.00 - $6.00) - 280,000 flight miles The 280,000 breakeven flight miles figure seemed high but doable. In her mind, she also translated that figure into an approximate number of flight hours, determining that figure to be about 933 hours per year for each of the Twin Otters. They would be pushing the planes pretty hard, especially for the northern Canadian environment, but she felt fairly certain the transportation demand would materialize that would require them to do it. Some updates cou automatically 3. If High Point could renegotiate its fuel contract and thus decrease variable costs per flight mile by 8% (to $5.52), how much could flight miles decrease and the operation remain at a breakeven level (assuming all the other base case financial facts did not change)? 4. If High Point's actual flight miles were 12% below the base case breakeven level of 280,000 flight miles, what fixed cost reduction would be required to keep the operation at a financial breakeven level? 5. If the company landed three new contract clients, thereby increasing projected flight miles by 20%, above the 280,000 base case level, to what level could variable costs (VC) rise and the operation remain at a financial breakeven level