IND E5-9 ANS - 225 fares B. Without calculations, determine...

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Regional Airway, INC 300 Fares Per unit Fare Revenues $45,000 150 Variable cost 0 Fuel $14,000 46.67 Snakes and drinks $800 2.67 Landing fees $2,000 6.67 Supplies and forms $1,200 4.00 $18,000 60 Contribution $27,000 90 Fixed cost Depreciation $3,000 Salaries $15,000 Advertising $500 Airport Hangar fees $1,750 $20,250 Net income $6,750 A1. Break -even point in dollars in dollars $33,750 A2. Break -even point in dollars in number of fares
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Unformatted text preview: 225 fares B. Without calculations, determine the contribution margin at the break-even point. $20,250 C. Decreased fare 135 Increased Fares 400 Increased variable cost per fare 81 Contribution per fare 54 Total contribution $21,600 Net Income $1,350 As net income will decreased by $5,400 the fare Decrease should not be adopted...
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This note was uploaded on 09/20/2008 for the course ACC 363 taught by Professor Rossi during the Spring '08 term at University of Phoenix.

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