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b 62. Becu Pacific is a luxury passenger carrier in the Philippines. All seats-are first...

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Accounting

b 62. Becu Pacific is a luxury passenger carrier in the Philippines. All seats-are first class, and the following data are available:
Number of seats per passenger train
Average load factor (percentage of seats filled)
Average full passenger fare
Average variable cost per passenger
Fixed operating cost per month
P2,400,000
Becu Pacific is considering offering a discounted fare of P300, which the company believes would increase load factor to fo percent. Only the auditional seats would be sold at the discounted fare. Additional monthly advertising cost would be P160,000. How much net income before tax would the discounted fare provide Becu Pacific if the company has 40-passengex trains per day and 30 days in a month?
a) P1,904,000 net ircone before tax
b) P16,000 net loss before tAx - this is the answer why?
c) P1,920,000 net income before tax
d) P16,000 net income before tax
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