Strategic Marketing: review questions

Breakeven Analysis Data

	Breakeven Analysis
	Your Airlines
	Amounts shown in U.S. dollars
	Sales
		Sales price per passenger			175.00
		Sales capacity per flight (units)			150
		Total Sales				26,250.00
	Variable Costs
		Commission paid to 3rd parties			2.00
		Direct material per unit			2.50
		Fuel			2.40
		Supplies per unit			1.00
		Other variable costs per unit			1.20
		Variable costs per unit			9.10
		Total Variable Costs				1,365.00
		Unit contribution margin			165.90
		Gross Margin				24,885.00
	Fixed Costs Per Period
		Administrative costs			1,200.00
		Insurance			5,000.00
		Slot Allocation			2,300.00
		Airport Rental Fees			8,000.00
		Other fixed costs			750.00
		Total Fixed Costs per period				17,250.00
		Net Profit (Loss)				7,635.00
	Results:
	Breakeven Point (units):				104
	Sales volume analysis:
	Sales volume per period (units)		0	15	30	45	60	75	90	105	120	135	150
	Sales price per unit		175.00	175.00	175.00	175.00	175.00	175.00	175.00	175.00	175.00	175.00	175.00
	Fixed costs per period		17,250.00	17,250.00	17,250.00	17,250.00	17,250.00	17,250.00	17,250.00	17,250.00	17,250.00	17,250.00	17,250.00
	Variable costs		0.00	136.50	273.00	409.50	546.00	682.50	819.00	955.50	1,092.00	1,228.50	1,365.00
	Total costs		17,250.00	17,386.50	17,523.00	17,659.50	17,796.00	17,932.50	18,069.00	18,205.50	18,342.00	18,478.50	18,615.00
	Total sales		0.00	2,625.00	5,250.00	7,875.00	10,500.00	13,125.00	15,750.00	18,375.00	21,000.00	23,625.00	26,250.00
	Net profit (loss)		(17,250.00)	(14,761.50)	(12,273.00)	(9,784.50)	(7,296.00)	(4,807.50)	(2,319.00)	169.50	2,658.00	5,146.50	7,635.00

Unit Contribution Margin

Variable costs per unit Unit contribution margin 9.1 165.9

Variable Costs Per Unit

Commission paid to 3rd parties Direct material per unit Fuel Supplies per unit Other variable costs per unit 2 2.5 2.4 1 1.2

Breakeven Analysis Chart

Breakeven Analysis Chart

Fixed costs per period 17250 17250 17250 17250 17250 17250 17250 17250 17250 17250 17250 Total costs 17250 17386.5 17523 17659.5 17796 17932.5 18069 18205.5 18342 18478.5 18615 Total sales 0 2625 5250 7875 10500 13125 15750 18375 21000 23625 26250 Net profit (loss) -17250 -14761.5 -12273 -9784.5 -7296 -4807.5 -2319 169.5 2658 5146.5 7635

Sales Volume (Units)

Dollars

Variables

_Example	FALSE
_Shading	FALSE
_Series	OfficeReady 3.0
_Look	1