I have 6 extensive questions and Id like to ask for explanations and answers to them. Thanks! In a recent news report, the following statement was…

I have 6 extensive questions and Id like to ask for explanations and answers to them. Thanks!

ONE:

In a recent news report, the following statement was made: “A report put out by brokerage house CLSA about Jet Airways said that the fall in ATF (fuel) prices has brought down the load factors (flight occupancy) required for the airlines to break even from 78 percent to 63 percent.” The load factor is the percentage of available seats on a flight that are occupied. Discuss

What are some important assumptions commonly made in CVP analysis?
What significant assumptions and limitations should be considered when using this piece of information?
Do these assumptions impose serious limitations on the analysis? Why or why not?

TWO:

The cost per seat-mile on a major U.S. airline is 24.1 cents. In order to estimate the cost of flying a passenger from Pensacola, FL, to Denver, CO, we should multiply 1,184 miles by 24.1 cents. Discuss

Do you agree or disagree? Explain your reasoning.
What would you suggest to estimate the cost of a flight?

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