Kaohsiung Spirit Airlines (KSA) is a small airline in the south of Taiwan. The no-fuss airlines offers only economy seats. Data on the airlines operations are presented below: Seats per airplane (number) Percentage of seats filled (avg load factor) Avg fare per passenger (undiscounted) Avg variable cost per passenger Fixed operating costs: per month 240 65% $85 $45 $2,200,000 1 The cost of fuel is a significant variable cost to any airline. If fuel charges DECREASE by $8 per barrel, it is estimated that the variable cost per passenger will DECLINE to $40. In this case, calculate the new break-even point in passengers and in the number of flights (Refer back to original data.) 2 KSA has experienced an increase in variable cost per passenger to $55 and an increase in total fixed costs to $2,500,000. The company has decided to raise the average fare to $90. Calculate the number of passengers is needed to generate an after-tax profit of $400,000 if the tax rate is 40 percent