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a large, profitable commercial airline company flies 737 type aircraft each with a max seating capacity of 132 passengers. compay literature states that the economic breakeven point with these aircraft is 62 passengers.

A.) draw a conoceptual graph to show the total revenue and total costs that this company is experiencing

B.) identify three types of fixed costs that the airline should carefully examine to loer its breakeven point. explain your reasoning

C.) identiry three types of variavble costs that can possivly be reduced to lower the breakeven point. why did you select these cost items?

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Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

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The three types of fixed costs that the airline should carefully examine to lower its breakeven point will be borrowed capital, insurance, and corporate and administrative overhead.

It should be noted that the fixed costs include borrowed capital, insurance, and corporate and administrative overhead. These are needed in order to reduce the breakeven point.

The variable costs that can be reduced to lower the breakeven point will be fuel, labor, and the flight crew.

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