Question

In: Operations Management

cost per available seat mile Break-even load factor = ?????????? ?????? ?????????????????? ???????? 2. Given total...

cost per available seat mile

Break-even load factor =

?????????? ?????? ?????????????????? ????????

2. Given total operating cost of $1.6 million and 8.5 million available seat miles, calculate the cost per available seat mile (CASM).

3. What is the break-even load factor if CASM is $0.21 and the fare is $0.35 per mile? For this calculation, the yield is the same as the fare.

Solutions

Expert Solution

2. Cost per available seat mile = 1.6 / 8.5 = $ 0.19

                                                  

3. Break even load factor = Cost per available seat mile / yield per pessanger mile

                                        = 0.21   / 0.35

                                      = $0.60

keosha answered 1 month ago
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