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The breakeven load factor that can be deduced from the information given is $0.48.
In this case, the CAST is $0.21, and the regular fare is $0.35 per mile. Therefore, the breakeven point will be:
= Cost / Yield
= 0.21/0.35
= 0.60
When the yield per passenger drops 10% for 2 months fare, the load factor will be:
= 0.60 × (10% × 2)
= 0.60 × (0.10 × 2)
= 0.60 × 0.20
= 0.12
Therefore, the breakeven load factor will be:
= $0.60 - $0.12
= $0.48
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