The airline's employee costs per flight include $500 each for the pilot and copilot, and $200 for each flight attendant. The law requires airlines tohave at least one pilot, copilot, and flight attendant for each flight. Fuel for the flight is expected to cost $8000, and the cost of catering food is $1for each item purchased.6th attemptO See HintPart 1 (4 points)The airline earns 40000If one flight attendant is staffed for the flight, the airline pays 200If the airline has three flight attendants for the flight, the firm earns sin revenue from tickets andS 500from in-flight purchases.in fixed costs.profit.VIEW SOLUTIONSUBMIT ANSWER3 OF 17 QUESTIONS COMPLETED28MacBook ProFIOescF3F5F6F7F23456789

Question
Asked Jan 29, 2019
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A regional airline sells 200 tickets to NYC for an average price of $200 one way. Half of the people on the flight will purchase a meal for $5.

The airline's employee costs per flight include $500 each for the pilot and copilot, and $200 for each flight attendant. The law requires airlines to
have at least one pilot, copilot, and flight attendant for each flight. Fuel for the flight is expected to cost $8000, and the cost of catering food is $1
for each item purchased.
6th attempt
O See Hint
Part 1 (4 points)
The airline earns 40000
If one flight attendant is staffed for the flight, the airline pays 200
If the airline has three flight attendants for the flight, the firm earns s
in revenue from tickets and
S 500
from in-flight purchases.
in fixed costs.
profit.
VIEW SOLUTION
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The airline's employee costs per flight include $500 each for the pilot and copilot, and $200 for each flight attendant. The law requires airlines to have at least one pilot, copilot, and flight attendant for each flight. Fuel for the flight is expected to cost $8000, and the cost of catering food is $1 for each item purchased. 6th attempt O See Hint Part 1 (4 points) The airline earns 40000 If one flight attendant is staffed for the flight, the airline pays 200 If the airline has three flight attendants for the flight, the firm earns s in revenue from tickets and S 500 from in-flight purchases. in fixed costs. profit. VIEW SOLUTION SUBMIT ANSWER 3 OF 17 QUESTIONS COMPLETED 28 MacBook Pro FIO esc F3 F5 F6 F7 F2 3 4 5 6 7 8 9

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Expert Answer

Step 1

Part-1 Revenues:

Revenues from Ticket sold:

Number of tickets sold:    200 tickets

Price per ticket:  $ 200 per ticket

Revenues from Ticket: (200 tickets @ 200): $ 40000

Revenues from In-flight purchases:

Number of customers purchased meals (200*1/2): 100 passengers

Price per meal: $ 5.00 per meal

Revenues from Meals (100 passengers @ 5): $ 500.

Step 2

Part-2.

When there is one flight attendent, the fixed cost is as under:

Cost of Fuel: $ 8000.

Salary of Pilot: (500*1): 500

Salary of Copilot: ( 500*1): 500

Salary of attendent (200*1): 200

Total Fixed cost of each flight:  $ 9200.

 

Step 3

Part-3

Profits of each flight is computed by deducting the variable ccost of meal from total revenues and then the total fi...

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