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Need help! Thank you Use the 2019 Form 10-K for Southwest Airlines to complete the requirements below. To obtain the Form 10-K you can use
Need help! Thank you
Use the 2019 Form 10-K for Southwest Airlines to complete the requirements below. To obtain the Form 10-K you can use either the EDGAR system (see instructions in Appendix A at the back of this text), or it can be found under "Investor Relations," which is under the "About Southwest" link on the company's corporate website, www.southwest.com. The company includes its Form 10-K as a part of its 2019 Annual Report. Be sure to read carefully the "Item 6. Selected Financial Data" section of the document. Required a. "Item 6. Selected Financial Data" lists data for several measures of activity. List the items from this table that might be used by Southwest as an activity base for CVP analysis. b. Of the activity bases that you identified for Requirement a, which do you think would work best for performing CVP at Southwest? Explain the rationale for your choice. c. Use the "Operating expense" and the "Revenue passenger miles" data from Item 6 to compute the variable cost and fixed cost components of operating expense using the high-low method presented in Chapter 2. Carry the variable cost per passenger mile ou to four decimal places. d. "Item 6" reports that in 2019 Southwest's "Load factor" was 83.5 percent. If this load factor could have been increased by 10 percent to 91.8 percent, do you think the company's net earnings would have increased by less than 10 percent, 10 percent, or more than 10 percent? Explain. Use the 2019 Form 10-K for Southwest Airlines to complete the requirements below. To obtain the Form 10-K you can use either the EDGAR system (see instructions in Appendix A at the back of this text), or it can be found under "Investor Relations," which is under the "About Southwest" link on the company's corporate website, www.southwest.com. The company includes its Form 10-K as a part of its 2019 Annual Report. Be sure to read carefully the "Item 6. Selected Financial Data" section of the document. Required a. "Item 6. Selected Financial Data" lists data for several measures of activity. List the items from this table that might be used by Southwest as an activity base for CVP analysis. b. Of the activity bases that you identified for Requirement a, which do you think would work best for performing CVP at Southwest? Explain the rationale for your choice. c. Use the "Operating expense" and the "Revenue passenger miles" data from Item 6 to compute the variable cost and fixed cost components of operating expense using the high-low method presented in Chapter 2. Carry the variable cost per passenger mile ou to four decimal places. d. "Item 6" reports that in 2019 Southwest's "Load factor" was 83.5 percent. If this load factor could have been increased by 10 percent to 91.8 percent, do you think the company's net earnings would have increased by less than 10 percent, 10 percent, or more than 10 percent? ExplainStep by Step Solution
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