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Really confused about how to do any of this At what percent of capacity would the airline need to operate to achieve $25,000 net income

Really confused about how to do any of this

  1. At what percent of capacity would the airline need to operate to achieve $25,000 net income after tax? (Target profit analysis)
  2. If the average ticket price increased to $375 (from $355), how many passenger-segments would be needed to achieve $25,000 net income after tax? (Marginal analysis)
  3. If the company spends $6,000 on advertising in February 2020, how many more passenger-segments will be necessary to achieve the same level of net income after tax achieved in February 2019? (Marginal Analysis)
  4. Referring to the February 2019 results, if revenue increased by 8%, what would be the % in operating income before tax? (DOL analysis)

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Hannah Khan HK Ga Share Comments AutoSave on B 208 Assignment #3 (1) - Word Search File Home Insert Draw Design Layout References Mailings Review View Help X Calibri (Body) 11 A A Aa A A11 AaBbCcDc AaBb CcDc AaBb AaBbcc AaB 09 Paste I Nomal 1 No Spac... Heading 1 Heading 2 BIUX, X ADA Find Replace Solect Title Dictate Sensitivity Editor 7 Clipboard Font Editing Voice Sensitivity Editor Paragraph Styles Northwest Wings Fishing Expeditions provides charter air service from Seattle Washington to remote fishing villages in southern Alaska. The CFO is working on the budget for February 2020 and uses same period comparables to complete the analysis. Average ticket price per passenger each way (passenger- segment) is $355. The airline has one 15-passenger aircraft and is capable of 40 flight-segments per month. Actual results from February 2020 are provided below. Northwest Wings Fishing Expeditions Contribution Analysis - February 2020 Total $ PPS % Revenue 168,980 $ 355 100.0% Variable Costs $ 85 23.9% Contribution Margin 128,520 $ 270 76.1% Fixed Costs 100,000 Operating Income before Tax $ 28,520 Income Taxes 5.989 Net Income After Tax $ 22,531 $ $ 40,460 5 s S $ s $ Average ticket price per passenger-segment Average variable cost per passenger-segment Fixed cost per month Tax rate Number of segments Passenger segment capacity Actual use of operating capacity 355 85 100,000 21% 476 600 79% Each question below is indenendent Round naccender-coaments to whole values Ro cure to document 211 words DO BE 100% HE Type here to search O Et e 12:06 AM 6/1/2020 21

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