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Frightproof Commuter Airlines is considering adding a new flight to its current schedule from Metro...

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Question

Accounting

Frightproof Commuter Airlines is considering adding a new flight to its current schedule from Metro
to Hicksville. This route has the following prices and costs.
Selling price per passenger per flight
Variable cost per passenger per flight
Fixed cost per flight
Income tax rate
25%
Required
a. Compute Frightproof's break-even point in number of passengers per flight.
b. How many passengers per flight must Frightproof have to earn $3,510 per flight after taxes?
c. Each aircraft has the capacity for 70 passengers per flight. In view of this capacity limitation, can
Frightproof carry enough passengers to break even? Can the company carry enough passengers
to earn $3,510 per flight after taxes?
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