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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?
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