Regional airways inc a small two-plane passenger airline, Ask an Expert

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Regional Airways, Inc., a small two-plane passenger airline, has asked for your assistance in some basic analysis of its operations. Both planes seat 10 passengers each, and they fly commuters from Regional's base airport to the major city in the state, Metropolis. Each month 40 round-trip flights are made. Shown on page 219 is a recent month's activity in the form of a cost-volume-profit income statement.
Fare revenues $45,000

Variable costs
Fuel $14,000
Snacks and drinks 800
Landing fees 2,000
Supplies and forms 1,200 18,000
Contribution margin 27,000
Fixed costs
Depreciation 3,000
Salaries 15,000
Advertising 500
Airport hangar fees 1,750 20,250

1. Calculate the break-even point in dollars.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9953420

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