Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sonic Flights is preparing a contribution margin report segmented by route. The following information is available: Miami/LA Atlanta/ New York New York/ Chicago Average ticket

Sonic Flights is preparing a contribution margin report segmented by route. The following information is available:

Miami/LA Atlanta/ New York New York/ Chicago
Average ticket price per passenger $1,200 $800 $700
Total passengers served 6,400 10,800 11,300
Total miles flown 150,000 105,000 80,000

The variable costs per unit are as follows:

Fuel $17 per mile
Wages $21 per mile
Food/beverage service $12 per passenger
Selling $65 per passenger

What is the contribution margin ratio for the Miami/LA route?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting An Introduction to Concepts Methods and Uses

Authors: Michael W. Maher, Clyde P. Stickney, Roman L. Weil

10th Edition

1111822239, 324639767, 9781111822231, 978-0324639766

More Books

Students also viewed these Accounting questions