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While these tutorial undertakings MUST be submitted separately. you are promote to work through these undertakings together with the other members of your squad. both during this week’s tutorial and in your ain clip. This is a good chance to guarantee that all members of your group can cipher a breakeven point before and after-tax. a border of safety and do a managerial determination sing the add-on of a new merchandise ( in this tutorial exercising. the add-on of a new path ) .

All replies must be inserted into the online signifier provided in LMS titled. “Topic 9 Tutorial Exercises” .

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Kangaroo Airlines

Kangaroo Airlines in little local bearer located in the Kimberly part of Western Australia. All seats are economic system category and the undermentioned information is available:

1. What is the break-even point in figure of riders per month?
30000

2. What is the break-even point in gross revenues gross dollars per month?
2100000

3. What is the break-even point in figure of flights per month ( round up ) ?
334

4. If Kangaroo Airline presently has on mean 40. 000 riders per month what is Kangaroo Airline’s border of safety in figure of riders?

5. If Kangaroo Airlines raises its mean full rider menu to $ 85 and the mean variable costs per rider will stay at $ 30. it is estimated that the burden factor will diminish to 60 per centum. What will be the break-even point in figure of flights ( round up ) ?

6. The cost of air power fuel is a important variable cost to any air hose. If fuel charges addition by $ 8 per barrel. it is estimated that variable cost per rider will increase to $ 40 nevertheless that mean full rider menu will stay at the original $ 70 per rider as will the original burden factor of 75 per centum. What will be the new break-even point in figure of riders?

7. The cost of air power fuel is a important variable cost to any air hose. If fuel charges addition by $ 8 per barrel. it is estimated that variable cost per rider will increase to $ 40 nevertheless the mean full rider menu will stay at the original $ 70 per rider as will the original burden factor of 75 % . What will be the new break-even point in figure of riders? What will be the new break-even point in figure of flights ( round up ) ?

8. Kangaroo Airlines has experienced an addition in mean variable cost per rider to $ 35 and an addition in fixed costs to $ 1. 500. 000. Kangaroo Airlines has decided to increase the mean full rider menu to $ 80. How many of riders are needed to bring forth an after-tax net income of $ 400. 000. if the company revenue enhancement rate is 30 per centum ( round up ) ?

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