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Sandhill Airways Inc., a small two-plane passenger airline, has asked for your assistance in some basic analysis of its operations. The planes seat 10 passengers
Sandhill Airways Inc., a small two-plane passenger airline, has asked for your assistance in some basic analysis of its operations. The planes seat 10 passengers each, and they fly commuters from Sandhills base airport to the major city in the province, Metropolis. Each month, 40 round-trip flights are made. Shown below is a recent months activity in the form of a cost-volume-profit income statement
*Please show work, thanks*
Fare revenues (400 fares) $ 50,400 Variable costs Fuel $ 20,820 Snacks and drinks 1,430 Landing fees 1,900 Supplies and forms 1,050 25,200 Contribution margin 25,200 Fixed costs Depreciation 2,550 Salaries 12,200 Advertising 2,230 Airport hangar fees 1,920 18,900 Operating income $ 6,300 Without calculations, determine the contribution margin at the break-even point. Contribution margin at the break-even point $Step by Step Solution
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