A large, profitable commercial airline company flies 737 type aircraft each with a max seating capacity of 132 passengers. compa
y literature states that the economic breakeven point with these aircraft is 62 passengers.
A.) draw a conoceptual graph to show the total revenue and total costs that this company is experiencing
B.) identify three types of fixed costs that the airline should carefully examine to loer its breakeven point. explain your reasoning
C.) identiry three types of variavble costs that can possivly be reduced to lower the breakeven point. why did you select these cost items?
A.) draw a conoceptual graph to show the total revenue and total costs that this company is experiencing
B.) identify three types of fixed costs that the airline should carefully examine to loer its breakeven point. explain your reasoning
C.) identiry three types of variavble costs that can possivly be reduced to lower the breakeven point. why did you select these cost items?
1 answer:
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Answer:
Gross Margin = $6,000
Explanation:
Gross margin refers to the Sales price - Direct cost associated with the product.
Here, Sales Value = 200 outdoor planters for $50 each = $50 200 = $10,000
Cost associated with this outdoor planters = Purchase cost as paid to supplier = $4,000
Thus, gross margin = $10,000 - $4,000 = $6,000
Note: Time period and dates provided for such sales and collection of amount or payment to supplier is of no relevance.
Final Answer
Gross Margin = $6,000