Selected financial data
For Twelve Months Ended December 31, 2012
|Partial income statement:||(000s omitted)|
|Operating revenues||$ 1,332,837|
|Wages and salaries||176,216|
|Sales and marketing||107,136|
|Total operating expenses||$ 1,364,570|
|Operating income/loss||$ (31,733)|
|Available seat miles (millions)||12,545|
|Aircraft in service||51|
|Load factor (% of seats filled)||
|Fuel gallons consumed (thousands)||161,404|
- For each of the expenses listed in the income statement, select a cost driver from the drivers listed under “Selected data.” Provide rationale for your choice of each of the drivers.
- Are there any expenses you would group together into a single pool? Why or why not?
- How could Virgin America use these cost pools and activity-based costing information internally?