Airtran Airways - Break Even Analysis
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I need assistance with the following analysis:
Identify any activity within AirTran Airways where you can apply breakeven analysis. You must be able to define:
A unit of measurement for the activity
Revenue per unit for the activity
Variable costs for the activity
Fixed costs for the period in the activity
If you cannot identify specific actual amounts, make a reasonable estimate and apply the tool as if the data were factual.
Your report should include
The name and nature of the organization
The activity and time period you used
The inputs you used
Your results
Any implications from your results
This should be a ONE page report.
Reference:
www.airtran.com
Thanks in advance for your time and assistance!
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Solution Summary
This solution answers various questions regarding break even analysis.
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I need assistance with the following analysis:
Identify any activity within AirTran Airways where you can apply breakeven analysis. You must be able to define:
A unit of measurement for the activity
Revenue per unit for the activity
Variable costs for the activity
Fixed costs for the period in the activity
If you cannot identify specific actual amounts, make a reasonable estimate and apply the tool as if the data were factual.
Your report should include
The name and nature of the organization
The activity and time period you used
The inputs you used
Your results
Any implications from your results
Breakeven Analysis
Break even point is the point at which gains equal losses.
Break-even analysis is basically an analytical technique for studying the relations between:
* fixed costs;
* variable costs; and
* profits.
Break-even analysis is a device for determining the point at which sales will just cover total costs. or the break even point for a product is the point where total revenue received equals total ...
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