Crane Airways Inc., a small two-plane passenger airline, has asked for your assistance in some...
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Accounting
Crane Airways Inc., a small two-plane passenger airline, has asked for your assistance in some basic analysis of its operations. The planes seat 10 passengers each, and they fly commuters from Cranes base airport to the major city in the province, Metropolis. Each month, 40 round-trip flights are made. Shown below is a recent months activity in the form of a cost-volume-profit income statement.
| Fare revenues ( 400 fares) | $ 49,200 | ||||
| Variable costs | |||||
| Fuel | $ 20,440 | ||||
| Snacks and drinks | 1,240 | ||||
| Landing fees | 1,680 | ||||
| Supplies and forms | 1,240 | 24,600 | |||
| Contribution margin | 24,600 | ||||
| Fixed costs | |||||
| Depreciation | 2,630 | ||||
| Salaries | 11,690 | ||||
| Advertising | 2,500 | ||||
| Airport hangar fees | 1,630 | 18,450 | |||
| Operating income | $ 6,150 | ||||
(a)
Calculate the break-even point in dollars and number of fares.
| Break-even point | $ enter the break-even point in dollars | ||
|---|---|---|---|
| Break-even point | enter a number of fares for break-even point | fares |
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