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    Gauresh Naik
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    Each additional trip imposes an incremental fixed cost of $2,906 each passenger contributes 70 - 5. = $ 64.40 Thus the break-even number of passengers for the additional trip = 2,906 / 64. = 46 (rounded up) each trip contributes: (70 -5.60) x 135 x 2 / 3 full - 2,906 = $ 2,890 the quarterly fixed cost of adding another plane to the fleet = $2,135,101 Thus the break even number of trips the new

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    Each additional trip imposes an incremental fixed cost of $2,906 each passenger contributes 70 - 5. = $ 64.40 Thus the break-even number of passengers for the additional trip = 2,906 / 64. = 46 (rounded up) each trip contributes: (70 -5.60) x 135 x 2 / 3 full - 2,906 = $ 2,890 the quarterly fixed cost of adding another plane to the fleet = $2,135,101 Thus the break even number of trips the new

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    10 views1 page

    Solution CVP Class Discussion Problems

    Uploaded by

    Gauresh Naik
    Each additional trip imposes an incremental fixed cost of $2,906 each passenger contributes 70 - 5. = $ 64.40 Thus the break-even number of passengers for the additional trip = 2,906 / 64. = 46 (rounded up) each trip contributes: (70 -5.60) x 135 x 2 / 3 full - 2,906 = $ 2,890 the quarterly fixed cost of adding another plane to the fleet = $2,135,101 Thus the break even number of trips the new

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    of 1

    Question 1. Case 2. Case 3.

    Case 1.

    b = a (d/c) = 19 ; d = (a b) c = $400,000; c = d / (a b) = 20,000;

    f = d e = $80,000 f = d e = $80,000 e = d f = $85,000 e = d f = $688,000 f = d e = $50,000

    Case 4. Case 5. Question 2.

    d = (a b) c = $700,000; a = (d / c) + b = 11;

    1. Note that in this part of the question the number of passengers carried on a trip is the driver Using the existing fleet, each additional trip imposes an incremental fixed cost of $2,906. Each passenger contributes 70 5.60 = $ 64.40. Thus the break-even number of passengers for the additional trip = 2,906 / 64.40 = 46 (rounded up). 2. In this part the number of trips flown (each with 135 seats, flying 2/3 full) is the driver Each trip contributes: (70 5.60) 135 2/3 2,906 = $ 2,890 The quarterly fixed cost of adding another plane to the fleet = $2,135,101 Thus the break even number of trips the new plane must fly per quarter = 2,135,101 / 2,890 = 739 (rounded up).

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