Saved my Mac Mailings Review View Tell me 21 AaBbCcDdEe AaBbCcDdEe AaBbCcDc AaBbCcD Heading 1 Heading Normal No Spacing Assignment #3 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 $ 40,460 $ 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 Average ticket price per passenger-segment $ 355 Average variable cost per passenger-segment $ 85 Fixed cost per month $ 100,000 Tax rate 21% Number of segments 476 Passenger-segment capacity 600 Actual use of operating capacity 79% Each question below is independent. Round passenger-segments to whole values. Be sure to document your work and label your final answer 1. How many passenger-segments are needed for Northwest Wings to achieve breakeven? (Basic CVP analysis) 2. At what percent of capacity would the airline need to operate to achieve $25,000 net income after tax? (Target profit analysis) Assignment #3 - Saved to my Mac erences Mailings Review View Tell me As 2 ABCeedte AaBbcode AaBbCcDc AaBBCCDEA Heading 1 Heading 2 A Normal No Spacing Assignment 3 3. 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) 4. 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) 5. Referring to the February 2019 results, if revenue increased by 8%, what would be the XA in operating income before tax? (DOL analysis) Focus