Big apple airlines operates 35 scheduled round-trip flights

Assignment Help Accounting Basics
Reference no: EM13569664

Big Apple Airlines operates 35 scheduled round-trip flights between New York and Chicago each week. It charges a fixed one-way fare of $200 per passenger. Big Apple Airlines can carry 150 passengers per flight. Fuel and other flight related costs are $5,000 per flight. On-flight meals are $5 per passenger. Sales commissions averaging 5% of sales are paid to travel agents. Flying crew, ground crew, advertising, and other administrative expenditures for the New York-Chicago route are $400,000 each week.

a. To make a profit of $700,000 per week, each of the 70 one-way flights must have how many passengers, on average? Define X. b. If the load factor is 60% on all flights, how many flights must Big Apple Airlines operate on this route to earn a total profit of $500,000 per week? Define X. c. Are fuel costs variable or fixed?

Explain. d. Big Apple Airlines accepts standby passengers on flights 30 minutes before takeoff if space is available. Assume standby passengers book their tickets through a travel agent, and that the airline pays a flat $6 commission per standby ticket rather than a 5% sales commission. What is the minimum price Big Apple Airlines can charge a standby passenger to cover the incremental costs associated with that passenger?

Reference no: EM13569664

Questions Cloud

Make the genral journal entries to a create the petty cash : louises dance studio created a 200 imprest petty cash fund. during the month the fund custodian authorized and signed
Find the accumulated amount at the end of 8 month on a 1200 : find the accumulated amount at the end of 8 month on a 1200 bank deposit paying simple interest at a rate of 7
Kimm company has gathered the following information about : kimm company has gathered the following information about its product. direct materials each unit of product contains
The overall responses must show substantial understanding : the sociology of childhood-third edition by willam a. corsaro is the textbookword equivalent 1200 wordsquestionusing
Big apple airlines operates 35 scheduled round-trip flights : big apple airlines operates 35 scheduled round-trip flights between new york and chicago each week. it charges a fixed
The book value of the bond at the end of the fifth year is : an n-year 2000 par-value bond with 9 annual coupons has an annual effective yield of i i gt 0. the book value of the
The general fund collected 825000 in accrued taxes which : the general fund collected 825000 in accrued taxes which was transferred to the debt service fund 600000 of this amount
Use the accounting standards codification asc database to : use the accounting standards codification asc database to determine the precise reference that represents the
Calculate the return on assets return on sales and asset : information about two video game companies was recently taken from te companies annual reports. virtual videos and

Reviews

Write a Review

Accounting Basics Questions & Answers

  From the e-activity identify the job aspects educational

research the internet and identify at least three 3 websites that provide specific information useful to accountants or

  Discuss differences between the indirect and direct methods

Discuss the differences between the indirect and direct methods of preparing the statement of cash flows. What do you believe are the most significant advantages and disadvantages of using each method? Explain your reasoning.

  Larned corporation recorded the following transactions for

larned corporation recorded the following transactions for the just completed month. a. 71500 in raw materials were

  Double declining balance depreciation

if we choose double declining balance depreciation rather than straight-line, depreciation expense in the first two years of this asset's life will be lower

  How can a person tell whether an entry to an expense

how can a person tell whether an entry to an expense account is payment for a legitimate expenditure or a means of

  What is the accounts receivable turnover

Based on the following data for the current year, what is the accounts receivable turnover? Net sales on account during year $500,000 Cost of merchandise sold during year 300,000 Accounts receivable, beginning of year 45,000 Accounts receivable, e..

  Possible asset impairment

Which of the following would not indicate possible asset impairment?

  Give depreciation for buildings and equipment

Journalize the transactions. (Hint: You may wish to set up T accounts, post beginning balances, and then post 2013 transactions.) Rivera uses straight-line depreciation for buildings and equipment.

  What where the total balances after adding and subtracting

what where the total balances after adding and subtracting the adjustments giving you the adjusted trial balance totals for the month of may? for the generals favorite fishing hole comprehensive promblem.

  Analysis of all variances

The Winnipeg Chemical Company uses flexible budgets and a standard cost system. Prepare an analysis of all variances

  At times we can generate a regression equation to explain

at times we can generate a regression equation to explain outcomes. for example an employees salary can often be

  What is betty gross estate

Betty dies on February 20 of the current year. Her estate consisted of the following assets, all valued as of her date of death:

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd