Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Quick Travel Company is a small aviation company that runs flights between Toronto, Canada and New York, USA for cheap prices. For the year 2020,
Quick Travel Company is a small aviation company that runs flights between Toronto, Canada and New York, USA for cheap prices. For the year 2020, the company plans to serve 60,000 passengers. Tickets are sold for $ 200 each. The company estimates that variable cost per customer is $ 60, and expected fixed costs for the year 2020 are $ 6,300,000. The company is subject to an income tax rate of 30%. Required: Calculate the break-even point in dollars for the year 2020?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started