Weltferien AG markets vacation packages to Tenerife from Dresden. The package includes a round-trip flight on Saxon-Air.

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Weltferien AG markets vacation packages to Tenerife from Dresden. The package includes a round-trip flight on Saxon-Air. Weltferien pays Saxon-Air €60 000 for each round-trip flight. The maximum load on a flight is 300 passengers.
Required
1. What is the unit cost to Weltferien of each passenger on a Saxon-Air round-trip flight if there are (a) 200, (b) 250, or (c) 300 passengers?
2. What role can the unit-cost figures per passenger calculated in requirement 1 play when Weltferien is predicting the total air-flight costs to be paid next month for Saxon-Air carrying 4000 passengers on 15 scheduled round-trip flights?
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Related Book For  book-img-for-question

Management and Cost Accounting

ISBN: 978-1405888202

4th edition

Authors: Alnoor Bhimani, Charles T. Horngren, Srikant M. Datar, George Foster

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