Question
Selling price per passenger per flight - $240 Variable cost per passenger per flight - $60 Fixed cost per flight - $8,640 Income tax rate
Selling price per passenger per flight - $240
Variable cost per passenger per flight - $60
Fixed cost per flight - $8,640
Income tax rate - 25%
Each aircraft has the capacity for 70 passengers per flight. In view of this capacity limitation, can Frightproof carry enough passengers to break even? Can the company carry enough passengers to earn $3,510 per flight after taxes?
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Principles Of Cost Accounting
Authors: Robert E. Schmiedicke, Charles F. Nagy, Edward J. Vanderback, E.J. Vanderbeck C.F. Nagy
9th Edition
0538812915, 978-0538812917
