Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 12-21 Dropping or Retaining a Flight [LO12-2] Profts have been decreasing for several years at Pegesus Airlines. In an effort to improve the company's

image text in transcribed

image text in transcribed

Problem 12-21 Dropping or Retaining a Flight [LO12-2] Profts have been decreasing for several years at Pegesus Airlines. In an effort to improve the company's performance, the company is Profits thinking about dropping several flights that appear to be unprofitable A typical income statement for one round-trip of one such flight (flight 482) is as follows: Ticket revenue (115 seats x 40% $2,760 occupancy $60 ticket price) Variable expenses ($13.00 per person)598_-21.7- Contribution margin Flight expenses: 100.0% 2,162 78.3% Salaries, flight crew Flight promotion Depreciation of aircraft Fuel for aircraft Liability insurance Salaries, flight assistants Baggage loading and flight preparation Overnight costs for flight crew and $ 370 680 520 195 180 730 175 assistants at destination Total flight expense:s Net operating 1oss 70 2, 920 $ (758)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management And Cost Accounting

Authors: Colin Drury

6th Edition

1844807037, 978-1844807031

More Books

Students also viewed these Accounting questions

Question

1. The human organism should be treated as a whole.

Answered: 1 week ago

Question

=+how might their legitimacy be improved?

Answered: 1 week ago