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Problem 3-52 Extensions of the CVP Model-Taxes (LO 3-4) Frightproof Commuter Airlines is considering adding a new flight to its current schedule from Metro to
Problem 3-52 Extensions of the CVP Model-Taxes (LO 3-4) Frightproof Commuter Airlines is considering adding a new flight to its current schedule from Metro to Hicksville. This route has the following prices and costs: Selling price per passenger per flight $ 240 Variable cost per passenger per flight $ 60 Fixed cost per flight $ 8,640 Income tax rate 25 % Required: a. Compute Frightproof's break-even point in number of passengers per flight. b. How many passengers per flight must Frightproof have to earn $3,510 per flight after taxes?
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