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Analyze Pacific Airways Pacific Airways provides air travel services between Los Angeles and Seattle. Cost...

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Accounting

Analyze Pacific Airways
Pacific Airways provides air travel services between Los Angeles and Seattle. Cost information per flight is as follows:
a. Determine the contribution margin per passenger for the full-priced ticket.
b. Determine the break-even number of seats sold per flight.
$ seats
c. Determine the contribution margin per passenger for discounted tickets.
$
a. The contribution margin has no relevance to new plan implementation.
b. The new contribution margin is more than the older margin. It shows a positive flow of funds into the business.
c. The differences are very meager and it is not effective to implement the plan.
d. The contribution margin before implementing the plan can be relied as it in the practice.
:
d-2. The contribution margin of the company represents:
a. The ability of the product to meet its variable costs.
b. The amount adjusted against the variable costs.
c. The remaining revenue after adjusting the variable costs incurred due to selling additional products.
d. The profit earned in the activity.
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