The gonueal forrisida for cakaiding fenat wsen ieuts is For aifinhs, costs are makily hied vamatde cost is neglegitile and benak iven 6 . cakculated for had foctor in deot of uruts. The formila for cilcuiating breok even inad fictor is QUESTION 1 Use the general break-even formula to calculate how many cups of colfee an airport cafb would need to sell to break evenit fixed costs are Sb. Woo; a cop of cetfee costs 50.42 to make, and cach cup sells for 53.50. Round to the nearest whole cup of colfee. A mewever Break-Even Analysis The general formula for catouloting tresk twen units is For artines costs are mainty fixed, varibble cont is neplingible, and breakeven is: calculated for load toctor instead of ursts. The formula for cakutating treak-even load factor is QUESTION 2 Given total operating cost of \$1.6 milion and 8.5 million available sesat miles, colculate the cost per available seat mile (CAsM) Mreak-fven Arualyris factor as QuFSIION 3 What is the break-even lakd lactoe if CAsp, is $0.20 and the fare is $0.30 per mile? fod this calculation, the yield is the same as the fare. It oe genesal formida for caleutsting becik twat unes is fistor is QUESTION 4 In Airline fare sales will reduce the yield. You can expect yield per passenger mille to diop 11\% for each rionth of fare sale. Calculate the break-exen load factor if CASM is 5020 , regular fare is 5030 per mile, and you are offering a one-month fare sale. Show your work or leave a comment Break-Even Analysis The gonerad formial for caicolatien troak tnvi units a For airlines, costs aer mainly fixed variable cost is neglig bhe and break cven is: calcutared for load factor inetead of unis. The formula tor calcutating break teven hose factor is Break-Fwen foad factor - Cost per Avodioble Seot Mile/ hind per Pawseryer Mile QUESTION 5 By how much would a 8% increase in compensation raise the CASM for each aircraft? Compensation is currently 5140,000 per aiteraft per quartet. fach aircraft filies 2,000 miles per day, has 45 seats, and flies 80 days per quarter