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3 years ago

EA7.

Business

1 answer:

aliya0001 [1]3 years ago

3 0

Answer:

(a) $92,650; $107,520

(b) $1.09 per mile; $1.12 per mile

Explanation:

(a) March:

Total cost to operate the aircraft:

= Fixed cost + Variable cost

= $79,900 + ($0.15 × 85,000 miles)

= $79,900 + $12,750

= $92,650

April:

Total cost to operate the aircraft:

= Fixed cost + Variable cost

= $93,120 + ($0.15 × 96,000 miles)

= $93,120 + $14,400

= $107,520

(b)

Total costs per mile to operate the fleet in March:

= Total cost in March ÷ Miles flew in March

= $92,650 ÷ 85,000

= $1.09 per mile

Total costs per mile to operate the fleet in April:

= Total cost in April ÷ Miles flew in April

= $107,520 ÷ 96,000

= $1.12 per mile

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