Sagot :
YEAR 1-
- Contribution margin = sales price per flight- Variable cost per flight
= $175 - ($100+ $30)
= $45
- Annual fixed cost = (Loan payment + Schedule salary+ dock fees) times 12months
= ($350+ $2500+ $500)*12
= $40200
- Break even quantity = Annual fixed cost / contribution per flight
= $40200/ $45
=893 flights (Approx)
- Contribution margin ratio = (contribution per flight/ sales per flight)*100
= ($45/$175)*100
= 25.71%
- Contribution margin= $40200
YEAR 2
- Break even quantity= $40200/ $41.5
= 968 flights (approx)
Contribution per flight= $175- ($100 + $30+ {175* 2%})
= $41.5
- Contribution margin ratio= ($41.5/ $175)* 100
= 23.71%
YEAR 3
- No of flights needed to retain profit of $10000
No of flights needed = (fixed cost + profit)/ contribution per flight
= ($40200 + $10000)/$45
= 1115 flights needed (approx)
Yes bank should issue the loan.
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