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:
EOQ 610
orders throughout the year 10.16
holding cost $ 610
ordering cost $ 636,6
Explanation:
D = annual demand = 6,200
S= setup cost = ordering cost = 60
H= Holding Cost = 2.00
Economic Order Quantity = 609.9180273
Order placed throughout the year:
demand / EOQ
6,200 / 610 = 10.16
Average Inventory (EOQ / 2) x holding cost
610 / 2 x $2 = $ 610
Ordering cost: 10.16 x 60 = 636,6