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TransPacific Airlines ( TPA ) budgeted 1 3 5 million passenger miles, or 5 % of the total market for the year just completed, at
TransPacific Airlines TPA budgeted million passenger miles, or of the total market for the year just completed, at a contribution
margin of cents per mile. The budgeted average price was cents per passenger mile.
The operating data for the year show that TPA flew million passenger miles with an average price of cents per passenger
mile. The terrorist activity in the early part of the year in several countries in the region decreased the total miles flown by all airlines
for the year by There is no flexiblebudget variance for all costs.
Required:
In an effort to understand the operating results, you are asked to compute the following. Do not round intermediate calculations.
Enter your answers in whole dollars.
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